---

        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, September 28, 2012, Vol. 13, No. 194

                            Headlines



A Z E R B A I J A N

BANK OF BAKU: Moody's Changes Outlook on B2 Ratings to Positive


G E R M A N Y

SANICARE: Files for Insolvency Following Founder's Death
TECHEM GMBH: Fitch Rates EUR410-Mil. Senior Secured Notes 'BB'
* Volkswagen Says Carmakers At Risk of Going Bust Without Aid


I R E L A N D

ELAN FINANCE: Moody's Rates New Sr. Unsecured Note Offering 'B1'
EUROMAX V: Fitch Affirms 'Csf' Ratings on Three Note Classes
ZOO ABS: Fitch Affirms 'CCsf' Rating on Class E Notes


K A Z A K H S T A N

BTA BANK: Bankruptcy Proceeding Granted Recognition in US Courts
TEMIRBANK JSC: S&P Affirms 'B/B' Counterparty Credit Ratings


L U X E M B O U R G

BOSTON LUXEMBOURG: Moody's Rates EUR740MM Bank Term Loans 'Ba3
GLOBAL BLUE: Moody's Assigns 'B1' Rating to Debt Instruments


P O L A N D

PBG SA: KWG Unit Obtains Bankruptcy Protection


R O M A N I A

AVERSA: AVAS Takes Debts Under Administration


R U S S I A

ASIAN-PACIFIC: Moody's Assigns 'B2' LT Sr. Unsecured Debt Rating
COMMERCIAL BANK: S&P Affirms 'B-/C' Counterparty Credit Ratings
* LIPETSK OBLAST: S&P Affirms 'BB' LT Issuer Credit Rating


S P A I N

* SPAIN: Fitch Examines How Bank Ratings Might Evolve


T U R K E Y

* TURKEY: Moody's Rates USD-Denominated Sovereign Sukuk 'Ba1'


U N I T E D   K I N G D O M

DECO 6 - UK: S&P Lowers Rating on Class C Notes to 'D(sf)'
GUILFEST: In Administration Following Ticket Sales
JJB SPORTS: Sport Direct's Bid to Take Over Stores Uncertain
MAN GROUP: Fitch Affirms 'BB' Rating on Hybrid Debt
PLOUGHCROFT BUILDING: In Administration, Cuts Jobs

ULYSSES PLC: Moody's Affirms 'B2' Rating on Class X1 Notes


U Z B E K I S T A N

MOBILE TELESYSTEMS: Business Loss No Impact on Moody's 'Ba2' CFR


X X X X X X X X

* BOOK REVIEW: The Health Care Marketplace


                            *********


===================
A Z E R B A I J A N
===================


BANK OF BAKU: Moody's Changes Outlook on B2 Ratings to Positive
---------------------------------------------------------------
Moody's Investors Service has changed the outlook on the
Azerbaijan-based Bank of Baku's B2 long-term local and foreign
currency deposit ratings to positive from stable. The standalone
E+ bank financial strength rating (BFSR) and Not Prime short-term
bank deposit ratings were affirmed.

Moody's rating action is largely based on Bank of Baku's audited
financial statements for 2011 prepared under IFRS.

Ratings Rationale

According to Moody's, the positive outlook reflects: (i)
improvements in Bank of Baku's franchise value in 2010-2012 and
its strong market position as the second-largest provider of
consumer loans in Azerbaijan, (ii) robust profitability, (iii)
adequate asset quality and (iv) sufficient capitalization to
absorb expected credit losses under Moody's scenario analysis.

At the same time, Bank of Baku's ratings are constrained by its
high appetite for credit risk, reflecting the bank's aggressive
growth strategy and its emphasis on the riskiest and immature
segment of the retail loan market -- unsecured consumer lending.
Moody's also believes that such lending growth may result in
looser underwriting policies, thereby leading to a material
higher cost of risk going forward.

Since 2010, Bank of Baku has substantially grown its balance
sheet and improved its market position. As a result of its rapid
expansion, Bank of Baku's loan portfolio increased by 42% in
2011, and by another 23% in H1 2012 to AZN329 million (US$419
million). Moody's notes that this high growth makes the loan book
mostly unseasoned.

In 2011, Bank of Baku reported record profits as its net income
increased by 126% to AZN26.2 million (US$33.3 million) from
AZN11.6 million in 2010 (according to the bank's audited IFRS
report), translating into a strong return on average assets of
9.6% and return on equity of 56.0% (2010: 5.5% and 33.5%,
respectively). The rating agency notes that the bank's high
profitability is driven by its focus on high-margin consumer-
lending business.

In light of Bank of Baku's highly profitable lending business,
Moody's views the bank's asset quality as adequate (loans 90+
days overdue accounted for 3.3% of gross loans in 2011). However,
the very rapid loan book growth in the context of Azerbaijan's
immature consumer credit market could adversely impact asset
quality if the operating environment deteriorates.

Moody's notes that Bank of Baku's rapid loan book growth puts
pressure on its liquidity. Liquid assets have decreased to around
12% of total assets during 2011 from 22% and remained at around
12.5% in H12012, which signals an aggressive liquidity
management.

Moody's also notes that Bank of Baku's capitalization benefits
from the bank's strong internal capital generation. With a Tier 1
ratio of 18.5% and a Total Capital Adequacy ratio of 21 % at
YE2011 the bank's capital buffer will likely be sufficient to
absorb expected credit losses under Moody's scenario analysis.

What Could Move The Ratings Up/Down

Moody's says that any possible upgrade of Bank of Baku's ratings
over the next 12-18 months will be contingent on its ability to
manage its rapid growth, maintaining satisfactory financial
fundamentals commensurate with those of higher-rated banks.

At the same time negative pressure could be exerted on the bank's
ratings by any material adverse changes in the bank's risk
profile, particularly any further weakening of the bank's
liquidity position or deterioration of its asset quality.

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Headquartered in Baku, Azerbaijan, Bank of Baku reported total
assets of AZN307.3 million (US$390.7 million), shareholders
equity of AZN57.2million (US$72.7 million) and net income of
AZN26.2million (US$33.3) million at YE2011, according to its
(audited) IFRS financial statements



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


SANICARE: Files for Insolvency Following Founder's Death
---------------------------------------------------------
Marilyn Gerlach at Reuters reports that Sanicare said on
Wednesday the company has filed for insolvency due to problems
that have arisen following the recent death of its founder and
head.

According to Reuters, a statement said the insolvency was for the
mail-order pharmacy activities of the company and would not
affect the rest of Sanicare's businesses, which include the
online unit.

The mail-order business would be run by court-appointed
administrator Ralph Buenning after the family of founder and
former head Johannes Moenter filed for insolvency on September 25
with the court in Osnabrueck city, Reuters discloses.

The statement quoted Mr. Buenning as saying he was looking for an
investor for the mail-order unit, which employs 342 staff,
Reuters notes.

Mr. Buenning, as cited by Reuters, said the insolvency has arisen
due to complexities of the company's organizational structure as
well as uncertainties surrounding the will of Mr. Moenter, who
died on September 4.

Sanicare is Germany's largest mail-order pharmacy.


TECHEM GMBH: Fitch Rates EUR410-Mil. Senior Secured Notes 'BB'
--------------------------------------------------------------
Fitch Ratings has assigned Techem GmbH's EUR410 million seven-
year 6.125% senior secured notes and EUR450 million five-year
senior secured loans, a final rating of 'BB'.  Fitch has also
assigned the EUR325 million eight-year 7.875% senior subordinated
notes, issued by Techem Energy Metering Service GmbH & Co KG, a
rating of 'B'.

The new financing refinances legacy senior and junior loans
borrowed in 2008, when Techem was acquired by funds owned by
Macquarie European Infrastructure Fund II Limited Partnership,
and transaction-related costs.

The assignment of the final ratings follows a review of final
documentation which materially conforms to information received
at the time the agency assigned the expected ratings together
with Techem GmbH's Long-term Issuer Default Rating (IDR).

Techem's 'BB-' IDR is supported by its leading position as a sub-
metering business in its domestic German market and its niche
industry, which is characterized by stable recurring revenues,
with over 80% generated by its domestic and international Energy
Services divisions, and underpinned by the duration of contracts
of five-10 years in Energy Services and 10-15 years in Energy
Contracting.  Techem's business is closely associated with that
of utilities, particularly distributors of gas and water but does
not involve the purchase and resale of energy as counterparty.

German and various other national regulatory frameworks support
Techem's business model, which is ultimately driven by demand for
consumption-based billing.  Besides Techem's relatively low-
growth but still highly profitable and stable market position in
Germany, Fitch expects its revenue profile to diversify further
from growth in its international energy services division, as
well as from cross-selling its existing energy contracting
offering to its existing customer base.

The rating also incorporates the renewed long-term financing
structure with final maturities of five, seven and eight years,
including smaller mandatory debt prepayments of the term loans
from excess cash flow.  However, given the relative dividend
flexibility in conjunction with a bullet-type debt maturity
profile, the ratings are predicated on Techem's ability to de-
leverage, with funds from operations (FFO) to adjusted debt
expected to decrease to 5x within two to three years (from
approximately 6.2x) at the outset of the new debt structure.
High funding costs under the new capital structure are projected
to be dilutive of post-operating cash flow.  However, Fitch
expects deleveraging to be supported by positive free cash flow
over the rating horizon.

Techem's ratings are constrained by its expected credit metrics
under the new capital structure, including initial FFO adjusted
leverage of c. 6.2x and FFO interest coverage of above 2x, which
is perceived to be low for the assigned rating level,
notwithstanding the lower-than-average business risks.  Through a
combination of debt reduction and FFO growth, Fitch estimates
credit protection measures will strengthen within two to three
years, with FFO adjusted leverage declining towards 5x and FFO
interest coverage approaching 2.5x.  Failure to use excess cash
flow to accelerate debt reduction while also maintaining a solid
liquidity profile could result in negative rating action.

The assigned instrument ratings follow broad considerations of
relative recoveries to notch issue ratings from 'BB' category
IDRs, as described in Fitch's "Recovery Ratings and Notching
Criteria for Non-Financial Corporate Issuers" dated 14 August
2012 and available at www.fitchratings.com.

The new senior secured loans rank pari passu with the secured
notes and benefit from a first-ranking security ownership
interest in each obligor (other than the parent) and guarantees
provided by major subsidiaries accounting for c.  85% of
consolidated EBITDA and gross assets.  The new subordinated notes
are structurally and contractually subordinated which results in
a one-notch uplift of the senior secured instruments relative to
the IDR and a two-notch discount for the subordinated notes.

What Could Trigger A Rating Action?

Positive: Future developments that may, individually or
collectively, lead to positive rating action include

  -- Further improvement in operating profitability through
     organic business growth, accelerated debt prepayment that
     reduces FFO adjusted leverage beyond Fitch's current
     expectations to below 4.5x on a sustainable basis
  -- FFO interest coverage ratio of 3x or above on a sustained
     basis.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include

  -- FFO adjusted leverage at or above 6x over a sustained period
     due to a significant decline in profitability versus Fitch's
     expectations
  -- Inability to reduce debt in the year following the
     refinancing
  -- FFO interest coverage below 2x
  -- Negative organic revenue dynamics for several successive
     years
  -- Negative free cash flow resulting in reduced available
     liquidity falling below EUR40m.

Fitch may have provided another permissible service to the rated
entity or its related third parties.

Details of this service can be found on Fitch's website in the EU
regulatory affairs page.


* Volkswagen Says Carmakers At Risk of Going Bust Without Aid
-------------------------------------------------------------
Christian Wuestner, Mathieu Rosemain and Alex Webb at Bloomberg
News report that Volkswagen AG said some competitors are at risk
of going out of business without financial aid, while main
regional rival PSA Peugeot Citroen said markets in northern
Europe are weakening.

"It is unclear if all carmakers will survive without governmental
help," Bloomberg quotes Chief Financial Officer Hans Dieter
Poetsch as saying on the eve of the Paris Motor Show.
"Especially carmakers in southern Europe that produce small cars
will be affected."

Europe's two largest automakers said there's intense downward
pressure on prices in the region and predicted that sales, which
may reach a 17-year low in 2012, won't recover next year,
Bloomberg relates.

According to Bloomberg, Erich Hauser, a London-based analyst at
Credit Suisse, said by phone that "The biggest problem for the
industry is the complete meltdown of pricing discipline."



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


ELAN FINANCE: Moody's Rates New Sr. Unsecured Note Offering 'B1'
----------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the new senior
unsecured note offering of Elan Finance plc, guaranteed by Elan
Corporation, plc and placed the rating under review for upgrade.
In addition, Moody's kept Elan's existing ratings under review
for upgrade, including the B1 Corporate Family Rating. Proceeds
of the offering are expected to be used for Elan's recent Tender
Offer and Consent Solicitation for its existing senior unsecured
notes.

Elan's ratings remain under review for upgrade based on the
pending spin-off of its R&D unit, Neotope Biosciences, which
would result in significantly improved EBITDA and cash flow. The
transaction is subject to shareholder and bondholder approval and
is expected to close by year-end 2012.

"All other things being equal, we currently anticipate upgrading
Elan's Corporate Family Rating and senior unsecured rating one-
notch to Ba3 upon close of the Neotope spin-off," stated Michael
Levesque, Moody's Senior Vice President.

Rating assigned and placed under review for upgrade:

Elan Finance plc:

B1 (LGD 4, 66%) senior unsecured notes due 2019

Ratings remaining under review for upgrade:

Elan Corporation, plc:

B1 Corporate Family Rating

Ba3 Probability of Default Rating

Elan Finance plc:

B1 (LGD 4, 66%) senior unsecured notes due 2016

There is no change to Elan's SGL-1 Speculative Grade Liquidity
Rating.

Ratings Rationale

Elan's B1 Corporate Family Rating reflects the company's limited
scale, high product concentration risk and modest albeit
improving free cash flow generation. Offsetting these strengths,
Elan's revenues remain comprised 100% of Tysabri sales. Although
Tysabri utilization trends should be positive, competition and
safety factors will reduce its rate of growth compared to recent
trends.

Completion of the Neoptope spin-off would result in significantly
improved credit metrics, with projected debt/EBITDA approaching
2.0 times in 2013. However, the rating will be constrained by
revenue concentration in Tysabri, a limited late-stage pipeline,
and an uncertain cash deployment policy.

The principal methodology used in rating Elan was the Global
Pharmaceuticals Industry Methodology published in October 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 Dublin, Ireland, Elan Corporation, plc is a
neuroscience-based biotechnology company. For the first six
months of 2012, Elan reported revenue of US$576 million.


EUROMAX V: Fitch Affirms 'Csf' Ratings on Three Note Classes
------------------------------------------------------------
Fitch Ratings has affirmed Euromax V ABS PLC (Euromax V) and
Dureve Limited Series 2010-1 (Dureve), as follows:

Euromax V

  -- Class X (XS0274619724): affirmed at 'Asf'; Outlook Stable
  -- Class A1 (XS0274615656): affirmed at 'CCCsf'
  -- Class A2 (XS0274616381): affirmed at 'CCCsf'
  -- Class A3 (XS0274616977): affirmed at 'CCsf'
  -- Class A4 (XS0274617439): affirmed at 'Csf'
  -- Class B1 (XS0274617603): affirmed at 'Csf'
  -- Class B2 (XS0274617942): affirmed at 'Csf'
  -- Class D1 combination notes (XS0274619138): affirmed at 'Csf'
  -- Class D2 combination notes (XS0274619211): affirmed at 'Csf'

Dureve

  -- Class Senior A-1 (XS0570761600): affirmed at 'Asf'; Outlook
     Stable
  -- Class Senior A-2 (XS0570762087): affirmed at 'BBB-sf';
     Outlook Stable
  -- Class Mezzanine B (XS0570763564): affirmed at 'BB+sf';
     Outlook Stable
  -- Class Subordinated C-1 (XS0570763994): affirmed at 'BB-sf';
     Outlook Stable

The affirmation of Euromax V's classes A1 to B2 at 'CCCsf' and
below reflects the notes' level of credit enhancement relative to
the portfolio's credit quality.

The portfolio has experienced negative credit migration since the
last review in October 2011.  The share of investment grade
assets has declined to 24% from 28% over the past year.  In
addition, three more assets have been classified as defaulted
over the same period. Currently, there are five defaulted CMBS
assets in the pool totalling EUR19.8 million.

The outstanding pool is concentrated at industry level and has
considerable exposure to 'CCCsf' and below rated assets. CMBS
makes up 52% of the portfolio while assets rated 'CCCsf' and
below account for 34% of the pool.

All the OC tests are being breached and there has been at least
one OC test failure since October 2008.  Due to coverage test
breach excess spread has been used to repay the senior notes.

The class D1 and D2 combination notes' ratings reflect the
ratings of their respective component classes, total
distributions to date (which count towards reducing the rated
balances) and future distributions expected on each of the
component classes.  The rated balances of the class D1 and D2
notes currently stand at EUR4.3 million and EUR6.5 million,
respectively.  There have been no distributions to the class D1
and D2 notes since May 2009 due to the component classes
deferring interest as a result of the OC test breach.

The 'Asf' rating on the Class X notes reflects the structural
features of this class.  The proceeds from its issue were used to
pay senior fees.  The class is expected to mature before its
legal maturity date in February 2013 as the class benefited from
the diversion of principal proceeds as a result of the coverage
test breach.

Dureve is a re-securitization of the class A1 of Euromax V ABS
PLC.  Class Senior A-1 has paid down to 18% of its original
balance, leading to increased credit enhancement for all the
rated notes since close.  However, the notes have been affirmed
due to the weak credit characteristics of the underlying
portfolio.


ZOO ABS: Fitch Affirms 'CCsf' Rating on Class E Notes
-----------------------------------------------------
Fitch Ratings has affirmed Zoo ABS IV plc's notes, as follows:

  -- EUR150.0m Class A-1A (ISIN XS0298493072): affirmed at
     'BBBsf'; Outlook Stable
  -- EUR87.3m Class A-1B (ISIN XS0298495523): affirmed at
     'BBBsf'; Outlook Stable
  -- EUR100.0m Class A-1R (no ISIN): affirmed at 'BBBsf'; Outlook
     Stable
  -- EUR27.0m Class A-2 (ISIN XS0298496505): affirmed at 'BBsf';
     Outlook Stable
  -- EUR30.0m Class B (ISIN XS0298496927): affirmed at 'B+sf';
     Outlook Stable
  -- EUR35.0m Class C (ISIN XS0298497495): affirmed at 'B-sf';
     Outlook Stable
  -- EUR28.0m Class D (ISIN XS0298498386): affirmed at 'CCCsf'
  -- EUR8.5m Class E (ISIN XS0298498972): affirmed at 'CCsf'
  -- EUR5.3m Class P (ISIN XS0298626564): affirmed at 'B-sf';
     Outlook Stable

The affirmation reflects the notes' levels of credit enhancement
relative to the portfolio credit quality.  The portfolio credit
quality has remained stable since the last review in November
2011, with assets rated 'CCCsf' or below representing 3.7% of the
portfolio, down from 6.7% in November 2011.  Assets rated 'BBB-
sf' or above account for 69.7% of the portfolio, down from 75.1%
in November 2011.  The decline in investment-grade assets was
mainly driven by downgrades of peripheral euro zone RMBS.

The reinvestment period ended in May 2012.  The portfolio manager
has used available funds to purchase investment-grade core and
peripheral euro zone RMBS, with prices ranging from 90 to 100
cents on the euro.  The transaction documentation stipulates a
minimum price of 90 cents on the euro for all purchases.  Fitch
notes that in the current economic environment investment grade
structured finance assets are generally trading noticeably below
this threshold.

All overcollateralization (OC) tests are passing.  OC test
cushions have remained stable since the last review.  The
interest coverage (IC) test has never been breached.  The IC test
cushion has increased since the last review.

Zoo ABS IV plc (the issuer) is a managed cash arbitrage
securitization of structured finance assets, primarily RMBS and
CLOs.  The portfolio is managed by P&G SGR S.p.A.



===================
K A Z A K H S T A N
===================


BTA BANK: Bankruptcy Proceeding Granted Recognition in US Courts
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
recognized BTA Bank JSC's proceedings in Kazakhstan as foreign
main proceeding within the meaning of Sections 1502(4) and
1517(b)(1) of the Bankruptcy Code.

Petitioner, Askhat Niyazbekovich Beisenbayev, as First Deputy
Chairman of the Bank's Management Board, has been duly appointed;
made responsible for administering the restructuring of the Bank;
and been authorized to serve as the foreign representative with
respect to the Kazakhstan Proceeding within the meaning of
Section 101(24) of the Bankruptcy Code.

The Debtor and the Foreign Representative are entitled to all of
the relief set forth in Section 1520 of the Bankruptcy Code.

                          About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.

The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and
Turkey. In addition, the Bank maintains representative offices in
Russia, Ukraine, China, the United Arab Emirates and the United
Kingdom. The Bank has no branch or agency in the United States,
and its primary assets in the United States consist of balances
in accounts with correspondent banks in New York City.

As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan.  It has no employees in the
United States.  Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.

JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced
insolvency proceedings in the Specialized Financial Court of
Almaty City, Republic of Kazakhstan.  Anvar Galimullaevich
Saidenov, the Chairman of the Management Board of BTA Bank, then
filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638)
on Feb. 4, 2010, estimating more than US$1 billion in assets and
debts.

On March 9, 2010, the Troubled Company Reporter-Europe reported
that JSC BTA Bank was granted relief in the U.S. under Chapter 15
when the bankruptcy judge in New York recognized the Kazakh
proceeding as the "foreign main proceeding."  Consequently,
creditor actions in the U.S. were permanently halted, forcing
creditors to prosecute their claims and receive distributions
in Kazakhstan.

In the U.S., the Foreign Representative is represented by Evan C.
Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A.
Graham, Esq. at White & Case LLP in New York City.

The Specialized Financial Court of Almaty approved BTA Bank's
debt restructuring on Aug. 31, 2010, trimming its obligations
from US$16.7 billion to US$4.2 billion, and extending its longest
maturity dates to 20 year from eight.  Creditors who hold 92
percent of BTA's debt approved the restructuring plan in May.
BTA reportedly distributed US$945 million in cash to creditors
and new debt securities including US$5.2 billion of recovery
units (representing an 18.5% equity stake) and US$2.3 billion of
senior notes on Sept. 1, 2010.  BTA forecasts profit of slightly
more than US$100 million in 2011, Chief Executive Officer Anvar
Saidenov told reporters in Almaty.


TEMIRBANK JSC: S&P Affirms 'B/B' Counterparty Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B/B' long- and
short-term counterparty credit ratings on Kazakhstan-based
Temirbank JSC. The outlook is stable. At the same time, the
Kazakhstan national scale rating was affirmed at 'kzBB'.

The affirmation of the ratings on Temirbank acknowledges the
gradual recovery of Temirbank's financial profile, in line with
our expectations.

"Temirbank demonstrated improved core profitability with positive
preprovision income as of year-end 2011 and in the first half of
2012. Therefore, we are removing our one-notch negative
adjustment for poor earnings capacity," S&P said.

"The bank's equity was adjusted for sizable tax loss
carryforwards. As a result, risk-adjusted capital (RAC) before
diversification at year-end 2011 amounted to 9.8%. We forecast it
will be at about 9% within the next 12-24 months. We have
consequently revised our capital assessment downward to
'adequate' (range of 7%-10%) from "strong" (above 10%)," S&P
said.

The ratings on Temirbank reflect the bank's "moderate" business
position, "adequate" capital and earnings, "weak" risk position,
"average" funding, and "adequate" liquidity, as S&P's criteria
define these terms. The stand-alone credit profile (SACP) is now
'b-'.

S&P classifies Temirbank as a government-related entity (GRE).
"In our opinion, there is a 'moderate' likelihood that
Kazakhstan's government would provide timely and extraordinary
support to Temirbank in the event of financial distress. In
accordance with our criteria for GREs, we based this opinion on
the bank's 'strong' link with the government and 'limited
importance' to Kazakhstan's economy," S&P said.

"Based on these factors, and according to our criteria, the long-
term rating on Temirbank benefits from one notch of uplift above
its 'b-' SACP," S&P said.

"The 'CCC+' rating on Temirbank's dated subordinated debt bank
note program is two notches below the final issuer credit rating
of 'B', in accordance with our criteria for nondeferrable capital
instruments," S&P said.

"The stable outlook reflects our expectation that Kazakhstan's
government will continue to provide support to Temirbank as the
bank cleans its loan book and diversifies its funding base. Given
the amount of problem loans the bank has, we expect nonperforming
loans to decline only gradually over the next 12 months," S&P
said.

"If we perceived that the government's stance toward the bank is
no longer consistent with a 'moderately high' likelihood of
support, we would remove the one notch of uplift that we
currently factor into the ratings. We could also consider
lowering the ratings if we observed further deterioration in
asset quality in the next 12 months. This could happen if the
quality of newly originated loans were weak, reflecting relaxed
underwriting practices. At the same time, a potential merger with
weaker Alliance Bank JSC (B-/Stable/C; Kazakhstan national scale
'kzBB-') could worsen the risk profile of the newly formed
entity. However, we see this merger as a long-term process and
don't currently factor its impact on our ratings and outlook on
Temirbank," S&P said.

"We could raise the ratings if Temirbank demonstrated a
significant and sustainable improvement in asset quality, with a
material reduction in problematic assets, which would improve its
risk position. An improvement in capitalization, with RAC above
10% caused by earnings growing faster than risk-weighted assets,
could be positive for the ratings, as well," S&P said.



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


BOSTON LUXEMBOURG: Moody's Rates EUR740MM Bank Term Loans 'Ba3
--------------------------------------------------------------
Moody's Investors Service has assigned definitive Ba3 ratings to
Boston Luxembourg's (BSN Medical) EUR740 million worth of senior
secured bank term loans and EUR175 million of senior secured
undrawn lines with respective maturities of 7 and 6.5 years. The
action follows the closing of the transaction at the end of
August. The outlook on the ratings is stable. BSN Medical's
corporate family rating of B2 remains unchanged.

Ratings Rationale

"The B2 corporate family rating (CFR) reflects the initial high
leverage, as exemplified by Moody's adjusted debt/EBITDA ratio of
approximately 7.0x based on 2011 EBITDA of EUR162 million" says
Alex Verbov, Vice President and Moody's lead analyst for BSN
Medical. Current LTM trading figures are somewhat higher
benefiting from organic growth (leverage is estimated at around
6.9x), but they also reflect the positive impact from recent EUR
depreciation, which may not be sustainable.

While the global markets for wound care management, compression
therapy and orthopaedics have historically shown attractive
growth rates, weaker economic conditions worldwide create several
challenges for players in the medical products and device
industry, including heightened pricing pressures and increased
volatility in raw material prices. Moody's expects this pricing
pressure to persist in the short to mid-term given continued
budgetary constraints of governments, but Moody's also expects
that volume growth in the longer-term will continue to be
supported by favourable demographics, new products and an
increasing demand from emerging markets. As a result, although
Moody's believes that downside risk for material decline is
limited, the rating agency expects that it may be difficult to
significantly grow operating margins from current levels.

Given the relatively high fragmentation and niche character of
BSN's relevant markets, further consolidation is likely and this
may require further expansion of geographic or product coverage.
Moody's expects that under EQT ownership the Company will be
focusing on bolt-on acquisitions, a view supported by the
initially undrawn and -- during syndication -- upsized EUR125
million acquisition line and a covenant that allows an additional
EUR100 million of lines for acquisition funding, under certain
circumstances. Whereas the effect of acquisitions is difficult to
quantify upfront, significant activity would likely slow down the
deleveraging profile and result in material upfront
restructuring/transaction costs. However, Moody's believes that
extending the BSN platform could help to further diversify
product and geographic reach of the business, reducing dependency
on any individual market or product.

The B2 CFR is supported by: i) attractive profitability levels,
such as EBITDA margins of over 24% in financial year 2011, driven
by leading shares in niche markets; ii) product and market
diversity and favorable underlying growth demand drivers; iii)
relatively low capex and R&D intensity , iv) the ability to
generate positive free cash flows, even in a scenario of
relatively high leverage and interest cost and iv) track record
of management operating in LBO environment.

The rating is constrained by: i) high initial leverage with
prospect of sizeable acquisition activity slowing down
deleveraging; ii) exposure to pricing pressure from reimbursement
levels, consolidating customer base and regulatory changes and
iii) relatively small for a global player absolute size.

The stable outlook reflects Moody's expectation that leverage
metrics would remain high, but not worsen in the next 12-18
months, partly mitigated by positive current trading trends.

Negative pressure could be exerted on the rating in the event of
increasing margin pressure and gross leverage exceeding 7.0x.
Aggressive debt-funded acquisition activity, weakening of
liquidity profile and/or sizeable restructuring costs could also
be triggers for downgrade.

A positive rating action is currently unlikely. An upgrade would
require a sustained period of maintaining profitability and cash
flow generation at a high level, with a subsequent reduction in
leverage, with for example debt/EBITDA improving materially below
6.0x and/or FCF/Debt of around 5%.

The EUR915 million senior secured credit facilities benefit from
senior ranking guarantees from all material group entities,
representing a minimum of 80% of all the group assets and EBITDA.
Sizeable mezzanine funding, which is subordinated, results in
upward notching for the senior instrument rating of Ba3 (Loss
Given Default rating of LGD3, 32%) and is a reflection of the
instrument's seniority in the event of an enforcement of the
collateral. However, the Ba3 instrument rating is relatively
weakly positioned and could come under pressure in case of
material acquisition line draw-downs over the next 12-18 months.

The principal methodology used in rating BLS was the Global
Medical Products & Device Industry Methodology published in
October 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.

BSN is a global healthcare provider of wound care, compression
therapy and orthopaedics products, with 2011 annual revenues of
over EUR 660 million.


GLOBAL BLUE: Moody's Assigns 'B1' Rating to Debt Instruments
------------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 rating,
with a loss given default assessment of LGD3, to all of Global
Blue Finance S.a.r.l.'s debt instruments, consisting of (i) a
revolving credit facility (RCF) of EUR65 million due 2018; (ii)
Term loan A of EUR120 million due 2018; and (iii) Term loan B of
EUR277.5 million due 2019. The capital structure also contains a
subordinated, long-dated shareholder loan of EUR582 million,
which Moody's has deemed to be 100% equity-like in its metrics
calculations. The outlook on the ratings is stable.

Proceeds from the transaction, together with the shareholder loan
from the equity sponsor Silver Lake Technology Management LLC,
have been used to acquire Global Blue and refinance its existing
debt. The transaction was completed on 31 July 2012.

The following ratings remain unaffected:

LT Corporate Family Rating (foreign currency) of B1

Probability of Default rating of B2

In addition, Moody's corrects its database to reflect that the
borrower of the RCF, Term loan A and Term loan B is Global Blue
Finance Acquisition BV. These debt instruments were initially
rated under Global Blue SA.

Ratings Rationale

Global Blue's B1 Corporate Family Rating (CFR) primarily reflects
Global Blue's relatively small scale, its fairly limited history
of maintaining earnings at recent levels, and its exposure to the
international travel sector, although Moody's recognizes the
company's strong growth in recent years and its free cash flow
generation.

The ratings for Global Blue also reflect its leading global
position in VAT refund processing for international shoppers
('Tax Free Shopping', or 'TFS'), as well as its smaller other
businesses. This includes the Currency Choice business ('CC'),
which enables travelers to make purchases while abroad in their
domestic currency. Moody's notes the company's very diverse
client base, with contracts covering approximately 253,000
merchant locations in the TFS segment. However, Moody's notes
that since contracts tend to be centralized with a retailer's
head office, the concentration of retail chains is higher, with
the top 10 international merchants accounting for around 16% of
net commissions in FY2011. Similarly, in the CC business, there
are approximately 17,000 merchant relationships with the top five
acquiring banks managing 58% of the company's gross commissions.
Moody's nevertheless notes the company's high retention rate
among its key clients.

While Global Blue derives its revenue from travelers from a
fairly broad range of countries, the company is highly reliant on
the European Union countries as destination markets for its
travelers. As such, events in EU countries, or currency movements
that adversely affect travel destinations, could potentially have
a notable impact on the company's earnings. Nevertheless, in the
past two fiscal years ended 31 March 2012, the company reported
very solid double-digit earnings growth, with EBITDA at EUR36.3
million in FY2010 and EUR94.2 million in FY2012. This growth was
on the back of increased numbers of transactions and travelers
from emerging markets, particularly from China and Russia. These
two countries are the largest source of Global Blue's revenues,
and generate the highest number of transactions in a number of
the company's core destination countries.

On a pro forma basis for this transaction and fiscal year-end 31
March 2012 (FY2012) earnings, Moody's estimates Global Blue's
gross adjusted leverage to be around 4.4x, which the rating
agency regards as adequate for the rating category, albeit
leaving limited headroom to accommodate a deterioration. While
the leverage metric incorporates the company's strong earnings
growth in the past two years, Moody's does not expect this growth
rate to persist, but at the same time would not expect a reversal
in the earnings trend.

Under the terms of the loan and intercreditor agreements, the RCF
and term loans rank pari passu with each other. The facilities
benefit from a guarantee over assets representing at least 85% of
group EBITDA; and are secured over all material assets and shares
owned by the obligor. Global Blue's PDR of B2 reflects a 65%
expected family recovery rate, in line with an all-bank debt
capital structure.

Moody's considers Global Blue's liquidity to be satisfactory, but
subject to sizeable seasonal swings reflecting holiday patterns.
At closing of the transaction, the company's liquidity consisted
of a cash balance of approximately EUR51.1 million, as well as
the EUR65 million RCF, of which EUR29.6 million was drawn for
working capital purposes at the outset. In addition, Moody's
notes that the company tends to generate free cash flows,
reflecting its limited capital spending, while at the same time
the proposed term loans will be subject to a cash sweep on excess
cash flows as of March 2013.

Given the company's reliance on the travel industry, its working
capital needs can vary significantly during the year. Moody's
understands that the total TFS process can take around 35 days on
average between when Global Blue pays out its VAT/GST refund and
when it is reimbursed from the merchant. The length of the TFS
process leads to significant working capital swings during the
year. During high growth periods (notably the summer months), it
can lead to a large working capital outflow; while the inverse is
true during periods of slower activity. The ratings assume that
even during periods of working capital outflows, Global Blue
retains strong headroom under financial covenants, as well as
adequate back-up sources of liquidity to cover working capital
and other financial requirements. The term loans and RCF contain
four financial covenants, for leverage, interest coverage, cash
flow coverage and capital expenditure (capex).

Moody's considers that the rating is adequately positioned based
on pro forma metrics. The stable rating outlook reflects Moody's
expectation that earnings will continue to grow, although the
rating agency does not factor in a similar growth trend as seen
in the last two years. Thus, for Global Blue to maintain its
current rating, Moody's would expect some degree of deleveraging,
while recognizing that seasonality can result in somewhat higher
leverage during periods of peak demand. Moody's ratings assume
continued access to the RCF, and strong headroom under applicable
covenants.

What Could Change The Rating Up/Down

If gross leverage, measured by debt/EBITDA, were to remain close
to 4.5x, this would likely lead to negative pressure on the
rating or outlook, thus implying that there is limited headroom
for any deterioration in earnings. Conversely, if the company
were to deleverage to below 3.5x while maintaining a solid
liquidity profile, this could be positive for the rating or
outlook.

Principal Methodology

The principal methodology used in rating Global Blue Finance
S.a.r.l. was the Global Business & Consumer Service Industry
Rating Methodology published in October 2010. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June 2009.

Domiciled in Luxembourg with headquarters in Switzerland, Global
Blue is a leading provider of VAT and Goods and Service Tax (GST)
refunds to travelers, as well as currency conversion services.
For FYE2012, the company reported revenues and EBITDA of
approximately EUR287.3 million and EUR94.2 million, respectively.



===========
P O L A N D
===========


PBG SA: KWG Unit Obtains Bankruptcy Protection
----------------------------------------------
Polska Agencja Prasowa reports that listed builder PBG, which
secured bankruptcy protection for debt restructuring in June,
said in a market filing that its KWG unit also obtained
bankruptcy protection.

KWG and seven other PBG units filed motions for bankruptcy
protection mid-June, PAP recounts.

PBG SA is Poland's third largest builder.



=============
R O M A N I A
=============


AVERSA: AVAS Takes Debts Under Administration
---------------------------------------------
Manuela Panescu at Ziarul Financiar reports that Romanian
privatization authority AVAS will take under administration the
debts managed by the country's fiscal watchdog ANAF over Aversa,
under bankruptcy, according to a legislative act approved in the
Government session Wednesday.

Aversa is a Romanian pump factory.



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


ASIAN-PACIFIC: Moody's Assigns 'B2' LT Sr. Unsecured Debt Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned a B2 long-term global
local currency senior unsecured debt rating to Asian-Pacific Bank
(APB). The rating carries a stable outlook. Any subsequent senior
debt issuance by APB will be rated at the same rating level
subject to there being no material change in the bank's overall
credit rating.

The debt rating of B2 was assigned to the following debt
instruments:

- RUB1.5 billion Senior Unsecured Regular Bond due in 2015

Ratings Rationale

The long-term global local currency senior unsecured debt rating
assigned by Moody's are in line with APB's standalone credit
assessment of b2, which is, in turn, mapped from the bank's
standalone E+ bank financial strength rating (BFSR) . The rating
does not incorporate any expectation of systemic or shareholder
support for APB in case of need.

According to Moody's, APB's BFSR is constrained by the bank's (i)
still moderate, albeit growing, franchise; and (ii) relatively
high appetite for credit risk, demonstrated by the rapidly
growing loan book.

At the same time, Moody's notes that the rating is underpinned by
APB's (i) leading position in Russia's Far East and Siberia among
regional private banks, (ii) robust profitability, (iii)
improving asset quality (iv) an adequate liquidity cushion
accumulated to date and diversified funding base.


COMMERCIAL BANK: S&P Affirms 'B-/C' Counterparty Credit Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-/C' long- and
short-term counterparty credit ratings and 'ruBBB-' Russia
national scale rating on Russia-based Commercial Bank
Obrazovanie. The outlook is stable.

"The affirmation reflects our view of the stability of the bank's
financial profile in the coming quarters, notably its liquidity,
capital, and asset quality," S&P said.

"We note that Bank Obrazovanie has significantly decreased its
single-name concentrations in its loan portfolio. The ratio of
the top-20 largest borrowers to total adjusted capital dropped
from 480% at June 30, 2011 to about 365% a year later, which is
still higher than the domestic average. We believe this
improvement was the result of both the expansion and
diversification of lending and the capital injections of about
Russian ruble (RUB) 633.8 million that the bank received at the
end of 2011. We expect the bank to continue diversifying its
customer base and reduce concentrations in its loan portfolio. We
are therefore revising our assessment of the bank's risk position
to 'moderate' from 'weak,' as our criteria define these terms,"
S&P said.

"However, we consider the bank's expansion strategy to be risky.
Bank Obrazovanie pursues a very aggressive asset growth strategy-
-of about 70% on average over for the last three years, which is
significantly above the system average. Moreover, the bank's
medium-term strategy assumes comparable growth rates. We
understand that the bank is growing from a very low base, but its
high reliance on shareholders' funds to increase its own capital
to support further growth raises concerns for us over its
capacity to continue expanding at such a high pace," S&P said.

"The bank's good franchise and recognition on the Moscow
Interbank Currency Exchange (MICEX), where it ranks among the top
three players in foreign exchange transactions by volume of
operations, have historically boosted the bank's business
position. Arbitrage opportunities in ruble/U.S. dollar high
frequency trading have historically been an important source of
revenues, despite their volatility. We believe this contribution
could gradually diminish, however, as new participants enter the
market, putting pressure on the bank's revenues from this income
source. We also note that earnings from core banking operations
continue to be weak and have not taken off despite high loan
growth. This is because the bank's commercial franchise remains
limited, in our view. We are therefore revising our assessment of
the bank's business position to 'weak' from 'moderate'," S&P
said.

"Other factors that support our 'B-' long-term rating on Bank
Obrazovanie, in addition to its 'weak' business position and
'moderate' risk position, are our 'bb' anchor for a commercial
bank operating only in Russia, the bank's 'weak' capital and
earnings, 'average' funding, and 'adequate' liquidity, as our
criteria define these terms," S&P said.

"The stable outlook balances our view of improvements in the
diversification of the bank's loan portfolio against its
aggressive growth strategy and weak core earnings profitability.
We expect Bank Obrazovanie to continue growing its assets faster
than the system as a whole," S&P said.

"An upgrade would most likely follow a significant capital
injection from shareholders or reduced growth appetite, which
would improve the bank's projected Standard & Poor's risk-
adjusted capital (RAC) ratio sustainably above 5%. We could also
take positive rating action if we saw material improvements in
the bank's business position, such as attracting new, highly
creditworthy clients and diversifying business lines. In our
view, a sustainable improvement in the profitability of the
bank's commercial banking business and less reliance on volatile
trading revenues in the earnings mix are also crucial for any
positive rating action," S&P said.

"We could consider a negative rating action if the bank's asset
quality deteriorated, which could follow a rapid expansion in the
bank's loan portfolio and relaxed underwriting practices. We
could also lower the ratings on the bank if aggressive growth
that is not supported by capital injections were to result in the
projected RAC ratio before adjustments falling below 3%," S&P
said.


* LIPETSK OBLAST: S&P Affirms 'BB' LT Issuer Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
issuer credit rating and 'ruAA' Russia national scale rating on
Russia's Lipetsk Oblast. The ratings were subsequently withdrawn
due to contractual issues. At the time of withdrawal, the outlook
was stable.

"The ratings were constrained by the oblast's high dependence on
a single taxpayer, metallurgy company OJSC NLMK
(BBB-/Negative/--); Russia national scale 'ruAAA'), and the
consequent volatility of its revenue and budgetary performance.
The developing, unbalanced institutional framework under which
Russian regions operate led to the oblast's low financial
flexibility," S&P said.

"The ratings were supported by Lipetsk Oblast's modest debt
levels and our view of financial management as neutral for
creditworthiness in an international context," S&P said.

"At the point of withdrawal, the outlook on the oblast was
stable, reflecting our opinion that despite an expected weakening
of budgetary performance in 2012, Lipetsk Oblast would maintain a
neutral liquidity position with cash and committed credit lines
well exceeding debt service falling due within the next 12
months. Our outlook factored in the oblast's adherence to
cautious financial management policies with continuing
application of cost-containing measures and reliance on medium-
term borrowing," S&P said.



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


* SPAIN: Fitch Examines How Bank Ratings Might Evolve
-----------------------------------------------------
In a new special report, Fitch Ratings examines how Spanish bank
ratings might to evolve over the near and medium term.  The
report comes ahead of the anticipated publication later this week
of the results of stress tests undertaken on 14 Spanish banking
groups as part of the Euro Group's EUR100 billion bank
recapitalization package for Spanish banks.

"The clean-up and recapitalization of the Spanish banking sector
expected over the coming months is a net positive for banking
sector stability," says Carmen Munoz, Senior Director in Fitch's
Financial Institutions Group.  "However, ultimately its success
will be heavily influenced by both the ability of individual
banks to respond to restructuring plans and by the collective
ability of pan-European initiatives to resolve the eurozone
crisis and move to a more stable macro-economic environment,"
Ms. Munoz added.

As part of its agreement with the Euro Group, Spain enacted a new
bank recovery and resolution law (RD Law 24/2012) in August.
This too should ultimately also help overall banking sector
stability as well as weaken the link between bank and sovereign
risk.  However, it also provides the Spanish authorities with a
stronger legal framework under which to force losses onto bank
creditors under "orderly resolution".  Consequently it will be an
important ratings consideration both in the near-term and in a
'post restructuring' world.

Fitch's bank rating framework explicitly includes an assessment
of support in formulating its rating opinions.  Fitch's Support
Ratings tend to assume a continued strong probability of support
for many eurozone banks in the near term, and actions to date by
policymakers and regulators seem to be consistent with that view.
There is momentum in general to reverse that path in the medium
to long term and expose both shareholders and creditors
(including senior unsecured), perhaps selectively, to loss.
Fitch would reflect that in lower Support Ratings and Support
Rating Floors (SRF) in the future.

Following the stress tests, banks will be classified into one of
4 groups:

Group 0 banks are Spain's strongest banks for which no capital
shortfall is identified.  Fitch believes Banco Santander, Banco
Bilbao Vizcaya Argentaria, CaixaBank and Kutxabank will be in
this group.  Unless they indicate weaker underlying solvency and
asset quality than Fitch currently factors into its ratings, the
stress test results should be ratings-neutral for banks in this
group.

Group 1 Banks are the weakest Spanish banks and already
controlled by the Fund for Orderly Bank Restructuring (FROB).
Unless the stress test results cause Fitch to reassess the
likelihood support, the EC's approval or rejection of
restructuring plans in November is probably the next key rating
event for these banks.

Group 2 banks are those with capital shortfalls according to the
stress test and needing state aid.  Fitch believes Banco Grupo
Caja 3, Liberbank and Banco Mare Nostrum will be Group 2 banks.
The real possibility of extraordinary support being needed and,
if relevant, burden-sharing by junior debt-holders means banks
expected to fall into this category have Viability Ratings (VR)
of 'ccc', with junior debt rated 'CC' or 'C'.

Their VRs would likely be downgraded to 'f' if a restructuring
plan involving extraordinary support is confirmed.  Upon
recapitalization, the VRs would be upgraded to a level that
reflects their post-recapitalization financial and risk profiles.
These banks' Issuer Default Ratings (IDR) are at their SRFs in
the 'BB' range, reflecting a moderate probability of support.
The stress tests results (possibly) and EC approval or otherwise
of restructuring plans are the next relevant events for the
banks' SRFs and IDRs.

Group 3 banks are those with capital shortfalls per the stress
test but with credible recapitalization plans, and which are able
to meet any capital shortfalls privately without recourse to
state aid. Fitch believes Banco Popular Espanol, Banco de
Sabadell and Unicaja Banco, S.A.U. (provided it does not merge
with Banco CEISS) will be Group 3 banks.  The stress test results
should be neutral for the VRs of these banks, unless they are
inconsistent with Fitch's expectations or analysis of solvency
and asset quality, or give Fitch cause to think extraordinary
support might ultimately still be needed.



===========
T U R K E Y
===========


* TURKEY: Moody's Rates USD-Denominated Sovereign Sukuk 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has assigned a definitive foreign
currency rating of Ba1 to Turkey's proposed US dollar-denominated
sovereign sukuk.

Ratings Rationale

Moody's definitive rating for these debt obligations confirms the
provisional rating assigned on September 5, 2012.

In Moody's opinion, the obligations that would be incurred by the
sukuk rank pari passu with other senior, unsecured debt issuances
of the Republic of Turkey and therefore carry the same rating.

Turkey's government bond rating is Ba1, further to Moody's
upgrade on June 20, 2012. The key drivers for the rating action
were (1) the significant improvement in Turkey's public finances
and the resulting increased shock-absorption capacity of the
government's balance sheet; and (2) policy actions that have the
potential to address external imbalances, such as Turkey's large
current account deficit, which is the largest credit risk facing
the country.

In Moody's rating methodology, Turkey's economic strength is
"moderate to high" in the sovereign rating spectrum. The large
scale of the economy and its diversification, plus its underlying
dynamism, has pushed per capita incomes to levels well above
those of peers. Turkey's increased integration into the global
economy is likely to maintain such growth in the coming years.

Key supports to the government's ratings include its
effectiveness, transparency and rule of law. The latter speaks in
part to a high willingness to repay its debt, as demonstrated
during the severe 2001 financial crisis.

The government's financial strength has been improving steadily
over the past decade, and this improvement can be seen across a
wide range of financial metrics, such as debt/revenue and debt
affordability. In its rating methodology, Moody's now assesses
the government's financial strength as "high." Although the
international economic environment has become more challenging
and Turkish domestic growth is slowing down, the country's
ongoing efforts to reduce its debt burden are unlikely to be
significantly affected. The relatively minor and short-lived
deterioration in Turkey's public finances following the 2008-09
financial crisis gives further cause for optimism.

Moreover, Moody's notes that the deficit reduction and primary
surpluses that the Turkish government has recorded over the past
two years are largely due to expenditure restraint rather than
revenue increases, despite Turkey's booming economic growth in
the past two years. In fact, since 2009, Turkey's general
government expenditure as a percentage of GDP has fallen to 37.4%
from 40.1%, whereas general government revenues have risen to
36.1% from 34.2% %. Even in Moody's adverse scenario, which
includes more pessimistic outcomes (relative to the rating
agency's forecasts) for nominal GDP growth, the primary balance
and interest costs, the rating agency would expect a slight
reduction in Turkey's debt burden over a two-year time horizon.
In fact, Turkey's general government debt level in 2011 was much
lower than the Ba1 median of 56.4% and more in line with the Baa3
median of 38.5%.

Turkey's resilience to economic, financial and political
vulnerabilities has strengthened considerably in recent years, as
evidenced by the ability of the country's financial markets to
endure volatile capital inflows and ongoing infighting between
the society's secular and religious elements. Nonetheless, there
are some noteworthy areas of political risk in Turkey, some of
which stem from secular-religious tensions, others from
longstanding regional and ethnic conflicts. Due to the size of
Turkey's external imbalances, Moody's considers the country's
susceptibility to event risk to be high. However, in the first
half of 2012, the government adopted policies, such as an
improved investment incentive scheme and increased incentives for
individuals to pay into individual pensions, that have the
potential to address some of the root causes of Turkey's external
imbalances.

The positive outlook on the Turkish government's ratings reflects
Moody's expectation that both the country's public finances and
resilience to external shocks will continue to improve its fiscal
and macroeconomic resilience.

The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.



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


DECO 6 - UK: S&P Lowers Rating on Class C Notes to 'D(sf)'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
DECO 6 - UK Large Loan 2 PLC's class B and C notes to 'B- (sf)'
and 'D (sf)'. "All of our other ratings in this transaction are
unaffected," S&P said.

The rating actions follow the issuer's failure to pay full
interest on the July 2012 note interest payment date (IPD).

"DECO 6 - UK Large Loan 2 is a U.K. commercial mortgage-backed
securities (CMBS) transaction arranged by the London branch of
Deutsche Bank AG. The transaction closed in December 2005, and
initially comprised four loans. Two of these loans have prepaid--
leaving two loans (Mapeley and Brunel Shopping Centre) with a
total senior balance of GBP272.16 million," S&P said.

"The two remaining loans in the transaction are both in special
servicing as a result of breaches of their financial loan
covenants. In accordance with the transaction documents, new
property valuations were commissioned, which subsequently
triggered an appraisal reduction of the liquidity facility and
the amount available to draw on a quarterly basis," S&P said.

"The Mapeley loan pays a fixed rate, and has paid full interest
each quarter with the help of a borrower-level cash reserve
(currently at GBP11.6 million), which the special servicer can
use to fund loan and property expenses. We consider that the cash
reserve will continue to fund the Mapeley loan interest payments
and, therefore, a loan interest shortfall is unlikely in the
short term, in our opinion," S&P said.

"The Brunel loan failed to repay at loan maturity in April 2012,
and consequently reverted to a floating rate. This meant a lower
interest burden to be paid from net rental income. Additionally,
the fixed- to floating-rate swap matured in April 2012--thereby
increasing the cash flow available to meet note interest
payments," S&P said.

"In July 2012, the cash manager reported a continued interest
shortfall on the class B, C, and D notes. The liquidity facility
draw of GBP1.2 million in April was repaid. The liquidity
facility subsequently drew for an amount of GBP687,508, due to
the appraisal reduction triggered under the Brunel loan. Despite
available revenue receipts increasing to GBP3,440,529 from
GBP3,093,388 in April 2012, in our opinion, the higher third-
party expenses, appraisal reduction on the Brunel loan limiting
liquidity facility draws, and increased accrued interest amounts
have caused continued interest shortfalls on the three junior
classes of notes," S&P said.

"We anticipate that on the October IPD, the issuer will pay full
interest, as well as accrued interest from the previous IPDs, on
the class A2 and B notes. However, there are likely to be further
interest payment disruptions on the class C and D notes, in our
opinion," S&P said.

"We have therefore lowered to 'B- (sf)' our rating on the class B
notes, to reflect the increased risk of future interest
shortfalls and the interest shortfall that has occurred on this
class of notes for two consecutive IPDs. Additionally, we have
lowered to 'D (sf)' our rating on the class C notes, to reflect
the continued disruption and increasing uncertainty in timing of
interest payments," 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 our Nov. 8, 2011 Advance Notice of Proposed
Criteria Change, our review may result in changes to the
methodology and assumptions that we use when rating European
CMBS. Consequently, it may affect both new and outstanding
ratings in European CMBS transactions," S&P said.

"On Sept. 5, 2012, we published our updated criteria for CMBS
property evaluation. These criteria do not significantly change
our longstanding approach to deriving property net cash flows and
values in European CMBS transactions. We do not expect any rating
action in Europe as a result of adopting these criteria," S&P
said.

"However, because of its global scope, our criteria for global
CMBS property evaluation do not include certain market-specific
adjustments. We will therefore publish an application of these
criteria to European CMBS transactions along with our updated
criteria for rating European CMBS," S&P said.

"Until such time that we adopt updated criteria for rating
European CMBS, we will continue to rate and monitor 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 Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

                    Rating
Class        To                  From

DECO 6 - U.K. Large Loan 2 PLC
GBP555.119 Million Commercial Mortgage-Backed Fixed-Rate Notes

Ratings Lowered

B            B- (sf)             B (sf)
C            D (sf)              B- (sf)

Ratings Unaffected

A2           BB (sf)
D            D (sf)


GUILFEST: In Administration Following Ticket Sales
--------------------------------------------------
Rhian Jones at Music Week reports that Surrey-based festival
Guilfest has gone into administration, following poor ticket
sales for this year's event.

"Scotty Events Ltd regret to announce that Guilfest has ceased to
trade due to poor ticket sales at this year's event in July . . .
.  We assess that this was down to the worst weather conditions
we have experienced in history of the festival, combined with
intense competition presented this year from other events.
Ongoing matters now lie in the hands of the insolvency
practitioner Leigh Adams LLP," parent company Scotty Events said
in a statement.

The report, citing BBC, founder Tony Scott said that poor ticket
sales this year - due in part to locals holding off buying
tickets in order to see how the weather turned out - had left the
festival with debts of GBP300,000.


JJB SPORTS: Sport Direct's Bid to Take Over Stores Uncertain
------------------------------------------------------------
Andrea Felsted at The Financial Times reports that Mike Ashley's
bid to rescue JJB Sports stores from closure is in jeopardy after
an 11th-hour spat with Adidas, one of the sports retailer's
biggest suppliers.

According to the FT, people familiar with the situation said that
Sports Direct, controlled by Mr. Ashley, and Adidas are at
loggerheads over the price at which it would take JJB's Adidas
stock under an administration.

A deal is thought to have been struck between Mr. Ashley, the
owner of Newcastle United football club, and KPMG, which is
trying to find a buyer for JJB's assets, the FT notes.

KPMG had been hopeful of announcing Sports Direct's acquisition
of a parcel of JJB's stores on Wednesday, the FT relates.

The people, as cited by the FT, said the row could see Mr. Ashley
walk away.

However, people close to the sale process said they did not see
the issue, which would be the case for any would-be buyer, as a
sticking point to a deal, according to the FT.  They said it was
all part of negotiations, the FT discloses.

JJB Sports said on Monday that it was poised to fall into
administration, putting 4,000 jobs at risk, after shares in the
Aim-traded sports retailer were suspended, the FT recounts.

The group, as cited by the FT, said it expected to appoint KPMG
as administrator before a deal to salvage part of the business in
the coming days.

Any sale is likely to take the form of a so-called pre-pack
administration, which is the pre-negotiated sale of an insolvent
business the FT says.

JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is a sports
retailer.  JJB Sports is a multi-channel sports retailer
supplying branded sports and leisure clothing, footwear and
accessories.  It operates out of over 185 stores across the
United Kingdom and Ireland with e-commerce offering.


MAN GROUP: Fitch Affirms 'BB' Rating on Hybrid Debt
---------------------------------------------------
Fitch Ratings has affirmed Man Group plc's (Man) Long-term Issuer
Default Rating (IDR) at 'BBB' and revised the Outlook to Negative
from Stable.

Rating Action Rationale

The affirmation reflects Man's strong franchise in alternative
investment fund management, strong liquidity, moderate gross
leverage and credit-positive capital requirements.  However, the
revision of the Outlook reflects higher downside risks to its
credit profile arising from the continuous decline in funds under
management (FUM), pressure on earnings and high pay out policy.

Rating Drivers and Sensitivities - IDRs and Senior Debt

FUM have been on a declining trend for some time, reducing to
US$53 billion at end-H112 driven by net outflows, negative
investment performance, the 'de-gearing effect' of AHL, Man's
managed futures division, driven by its negative performance on
guaranteed products and negative FX movements.  While net fund
outflows remain partly mitigated by Man's strong sales ability on
the back of a more diverse product suite and can be partly
attributed to cyclical factors (e.g. lower investor risk
appetite) arresting this trend remains one of Man's key
challenges.

Management fee (220bp/FUM in H112) margins are strong relative to
long-only managers and EBITDA margins are still quite healthy.
Declining FUM and a shift towards less structured FUM means Man
is having to address costs in order to try to offset aggregate
level margin pressure and earnings pressure.  Performance fees
are inevitably volatile but can provide very material upside when
triggered.

Man is required to comply with bank-like regulatory capital
requirements. This is ratings positive because it means it has to
hold net tangible assets (ie there is a secondary source of debt
service other than operating cash flow) and restricts the risk of
large debt-financed acquisitions.  Leverage metrics remain solid
(gross debt/EBITDA in H112 stable at around 1.9x under Fitch's
calculations) despite EBITDA reduction, thanks to debt buy backs.
Man also has a comfortable liquidity and net cash position, which
Fitch expects to continue.

Man has generally reduced its risk appetite for, and levels of,
loans to funds and seed capital investments.  However, Man
remains exposed to contingent credit, liquidity and market risks
from such sources and is periodically prepared to make use of its
own balance sheet to support funds.  For example, in 2011 Man
acquired all the residual exposure to the Lehman estates from 29
GLG funds for USD355m.

The most likely reason for a downgrade would be the company
failing to arrest the decline in FUM and neutralize EBITDA
pressure, especially if this leads to a weakening of gross
debt/EBITDA and interest cover beyond current levels.  In this
regard, the maturing of a further US$172 million of senior debt
in 2013 helps to cushion the downside risk.  Downward pressure
could also arise from a material reduction in net cash or
increase in gross leverage as a result, for example, of an
acquisition.  Under Fitch's criteria, debt/EBITDA is generally
less than 3x and interest cover at least 6x for 'BBB' rated
investment managers.
Evidence of a sustainable easing in FUM and earnings pressures,
combined with maintenance or improvement of leverage measures
could see the Outlook revised back to Stable.

Subordinated and Hybrid Debt

Man's subordinated notes are rated one notch below its IDR,
reflecting their subordination.  Man's hybrid bond is rated three
notches below its IDR, reflecting its deep subordination (two
notches) and incremental non-performance risk characteristics
(one notch).  The ratings are broadly sensitive to the same
considerations that might affect Man's IDR.

The rating actions are as follows:

  -- Long-term IDR: affirmed at 'BBB'; Outlook revised to
     Negative from Stable
  -- Senior unsecured debt: affirmed at 'BBB'
  -- Dated subordinated debt: affirmed at 'BBB-'
  -- Hybrid debt: affirmed at 'BB'


PLOUGHCROFT BUILDING: In Administration, Cuts Jobs
--------------------------------------------------
Peter Bennett at Solar Power Portal reports that Ploughcroft
Building Services Ltd has been put into administration and sold
to a new company, Ploughcroft Ltd, after the company hit
financial difficulty after the series of feed-in tariff cuts
enforced on the solar industry caused many of Ploughcroft's
customers to default on payments.

The company ceased trading, making all of its workforce redundant
-- as the industry continues to feel the effects of the ongoing
solar slump caused by Department of Environment Climate Change
(DECC)'s latest round of feed-in tariff cuts, according to Solar
Power Portal.

Solar Power Portal says that an agreement has been reached
between the administrators and the former owner of Ploughcroft
Building Services Ltd, which will see Mr. Hopkins continue to
trade under the newly formed Ploughcroft Ltd.  Mr. Hopkins has
indicated that the new company will set up a customer helpline to
assist with customer warranties offering help, guidance and
advice as the new business goes forward, the report relates.


ULYSSES PLC: Moody's Affirms 'B2' Rating on Class X1 Notes
----------------------------------------------------------
Moody's Investors Service has downgraded the Class A Notes issued
by Ulysses (European Loan Conduit No. 27) PLC:

    GBP249M Class A Notes, Downgraded to Baa3 (sf); previously on
    Jul 6, 2009 Downgraded to A2 (sf)

    Class X1 Notes, Affirmed at B2 (sf); previously on Aug 22,
    2012 Downgraded to B2 (sf)

Moody's does not rate the Class B, Class C, Class D, Class E, or
the Class X2 Notes.

Ratings Rationale

The downgrade reflects Moody's increased loss expectation,
largely driven by the increased likelihood that around GBP 50
million of potential liabilities will be paid in priority to the
Class A Note principal upon a sale of the property expected in
2014 / 2015.

Moody's Class A Note-to-Value ("NTV") is 64.4%, which
deteriorates to 93% after incorporating the currently estimated
prior ranking swap liabilities. While a 93% NTV is not consistent
with an investment grade rating, Moody's base case assumes that
no swap liabilities are likely to be crystallized before 2014
/2015. Moody's projects a Class A NTV (including potential swap
liabilities) of 81%, 75%, and 69% in July 2014, July 2015, and
July 2016 respectively. Swap maturity is coterminous with the
Notes legal final in July 2017.

The Class A rating is likely to move below investment grade if
(i) any scenario should arise that makes it likely that
significantly more than GBP 50 million of potential swap or other
liabilities will eventually be paid in priority to the Class A
Note principal or (ii) there is a material deterioration in
Moody's property value.

The rating on the Class X1 Notes is affirmed because the current
rating already incorporates the updated risk assessment.

The key parameters in Moody's analysis are the default
probability of the securitized loan (both during the term and at
maturity) as well as Moody's value assessment for the prime
single office property securing this loan. Moody's derives from
those parameters a loss expectation for the securitized pool.

In general, Moody's analysis reflects a forward-looking view of
the likely range of commercial real estate collateral performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside an acceptable range of the key parameters such as
property value or loan refinancing probability for instance, may
indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. There may
be mitigating or offsetting factors to an improvement or decline
in collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realized losses.

Primary sources of assumption uncertainty are the current
stressed macro-economic environment and continued weakness in the
occupational and lending markets. Moody's anticipates (i) delayed
recovery in the lending market persisting through 2013, while
remaining subject to strict underwriting criteria and heavily
dependent on the underlying property quality, (ii) strong
differentiation between prime and secondary properties, with
further value declines expected for non-prime properties, and
(iii) occupational markets will remain under pressure in the
short term and will only slowly recover in the medium term in
line with anticipated economic recovery. Overall, Moody's central
global macroeconomic scenario is for a material slowdown in
growth in 2012 for most of the world's largest economies fueled
by fiscal consolidation efforts, household and banking sector
deleveraging and persistently high unemployment levels. Moody's
expects a mild recession in the Euro area.

Moody's Portfolio Analysis

Ulysses (European Loan Conduit No. 27) PLC closed in July 2007
and represents the true-sale securitization of the GBP429 million
senior portion ("Senior Loan") of a GBP535 million commercial
real estate loan ("Whole Loan") secured by the 35-floor CityPoint
building in the City of London. The 703,382 sq ft property was
built in 1967 as the headquarter of British Petroleum and was
largely refurbished and extended in 2001. The building is multi-
let to 29 tenants with a weighted average of around seven years
to the earlier of lease expiry or first break date. Current
Vacancy rate is 7%, or 49,065 sq ft.

Most recently reported annual rent is GBP26.1 million (of which
6.4% is still in its rent-free period until Q2 2014), with net
rental income at GBP24.4 million. Moody's was not provided with
any details on annual deductions before arriving at net rental
income, but assumes those costs to include (i) GBP400,000 for
Jersey Property Unit Trust ("JPUT") Structure Costs and (ii)
vacant space costs of around GBP25 per sq ft (to cover void
service charge and empty rates (property taxes)) and (iii) fees
to the Property Adviser (an affiliate of the borrower) and (iv)
fees to the Managing Agent (CBRE) and (v) other costs.

Moody's estimates the current property value at GBP386 million,
which is broadly in line with the value in Knight Frank's 2017
downside Scenario disclosed in a Notice dated 22 May 2012
("Notice"). Knight Frank's Recommended Scenario projects a
property value of GBP492 million at exit in July 2014, which is a
27% uplift from Moody's current value.

Moody's does not give benefit to any potential value uplift to
the property in 2014 / 2015, however it may reconsider its
expected exit value if it sees tangible results from the planned
Asset Management Strategy disclosed in the Notice. With less than
1% of current rent having a break or expiry in the next four
years, Moody's view is that any value enhancement is not likely
to come from yield compression but instead from (i) letting up
the currently vacant space (ii) re-gearing existing leases and
(iii) progress on the GBP21 million Capital Expenditure Plan (to
2017).

In order to swap the fixed interest received from the borrower
into floating, the GBP429 million securitized Senior Loan and the
GBP106 million Subordinated Tranches are hedged at 5.385% at
Issuer level by swaps maturing in July 2017. All swap payments
rank senior to payments of interest and principal on the
securitized Senior Loan. Moody's was not provided with any
current or projected swap valuations, but estimates the current
swap liability at GBP111 million (which compares to GBP111.5
million as at April 19, 2012 disclosed in the Notice).
Furthermore (and based on current swap curves), Moody's estimates
swap liabilities of GBP63, 40, and 19 million in July 2014,
July 2015, and July 2016 respectively.

In addition to potential swap liabilities, any outstanding
servicer advances (and perhaps also Capital Expenditure
liabilities) will be paid in priority to the Class A Note
principal upon a sale of the property expected in 2014 /2015.

Moody's expects the JPUT structure to complicate and add costs to
any workout scenario, but may ultimately aid recoveries by
avoiding the 4% Stamp Duty Land Tax ("SDLT") upon an eventual
sale.

Moody's views as mildly credit negative the continued involvement
of the borrower as Property Adviser (whose responsibilities
include finding, selecting and negotiating with new tenants)
given its fees and that it is currently out-of-the-money and may
not recover any equity upon an eventual sale. However, Moody's
also recognizes the potentially positive impact on recoveries in
keeping the borrower incentivized to assist in carrying out the
Asset Management Strategy and preserving the JPUT structure.

Portfolio Loss Exposure: Moody's expects a significant amount of
losses on the securitized portfolio, stemming mainly from the
refinancing profile and potentially large prior ranking
liabilities. Given the default risk profile and the anticipated
work-out strategy, the expected losses are likely to crystallize
only towards the medium or end of the transaction term.



===================
U Z B E K I S T A N
===================


MOBILE TELESYSTEMS: Business Loss No Impact on Moody's 'Ba2' CFR
----------------------------------------------------------------
Moody's Investors Service has said that the Ba2 corporate family
rating (CFR) and stable outlook of Mobile TeleSystems OJSC (MTS)
are unaffected by the recent confiscation of assets of its
wholly-owned Uzbek subsidiary Uzdunrobita LLC. At the same time,
Moody's views the loss of cash-generating Uzbek business as
moderately credit negative for MTS.

On September 17, 2012, MTS announced that the Uzbek court has
issued a ruling to confiscate all assets of Uzdunrobita in favour
of the Uzbek state, in connection with a judgment against four
employees of Uzdunrobita.

Uzdunrobita had virtually no debt and has contributed a modest
portion of MTS's consolidated reported EBITDA -- approximately 5%
-- over the last 12 months to June 2012. Therefore, its loss will
translate into only a small increase (around 0.1x) in MTS's
reported debt/EBITDA of around 1.8x. Given that Uzdunrobita has
not paid any dividends to its parent MTS, being effectively a
standalone entity as opposed to helping to service the group's
debt, the impact of its exclusion from the group's cash-
generating base is limited to one-off accounting effects.

Given its strong disagreement with the accusations imputed to
Uzdunrobita and its employees, MTS might appeal to an
international court to dispute the Uzbek court's decision.
Moreover, MTS would likely dispute any potential recourse claims
against it by the Uzbek court resulting from the imputed
infliction of losses for the Uzbekistan state by Uzdunrobita.
Moody's does not rule out the possibility that MTS might settle
its disagreements with the Uzbek authorities and resume its
business in Uzbekistan. MTS did this with its business in
Turkmenistan, re-launching it in Q3 2012 following its suspension
in 2011 due to licensing issues, although Moody's makes no
comparisons between the two cases.

In Moody's view, the Uzdunrobita case is evidence of the less
developed political and legal framework in the Commonwealth of
Independent States (CIS), which the rating agency factors into
most of the ratings it assigns to corporates in this region. As a
result, the ratings of corporates domiciled in the CIS are
generally lower than the ratings of companies with similar
financial profiles but operating in developed markets.
Nevertheless, Moody's will continue to assess the operating
environment risks separately for different CIS countries.

MTS is one of the leading integrated telecommunications groups in
Russia, with the highest mobile market share in terms of
subscribers as of June 2012 -- 31% -- according to Advanced
Communications and Media (AC&M), a research agency. In the last
12 months to June 30, 2012 MTS's revenues amounted to US$12.4
billion and EBITDA, as adjusted by Moody's, to US$5.8 billion. As
of the same period, the company derived a dominant 85% portion of
its revenue from its operations in Russia, 9% in Ukraine, 4% in
Uzbekistan and 2% in Armenia.



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


* BOOK REVIEW: The Health Care Marketplace
------------------------------------------
Author: Warren Greenberg, Ph.D.
Publisher: Beard Books
Softcover: 179 pages
List Price: $34.95
Review by Henry Berry

Greenberg is an economist who analyzes the healthcare field from
the perspective that "health care is a business [in which] the
principles of supply and demand are as applicable . . . as to
other businesses."  This perspective does not ignore or minimize
the question of the quality of health, but rather focuses sharply
on the relationship between the quality of healthcare and
economic factors and practices.

For better or worse, the American healthcare system to a
considerable degree embodies the beliefs, principles, and aims of
a free-market capitalist economic system driven by competition.
In the early sections of The Health Care Marketplace, Greenberg
takes up the question of how physicians and how hospitals compete
in this system.  "Competition among physicians takes place
locally among primary care physicians and on a wider geographical
scale among specialists.  There is competition also between M.D.s
and allied practitioners: for example, between ophthalmologists
and optometrists and between psychiatrists and psychologists.
Regarding competition between physicians in a fee-for-service
practice and those in managed care plans, Greenberg cites
statistics and studies that there was lesser utilization of
healthcare services, such as hospitalization and tests, with
managed care plans.

Some of the factors affecting the economics of different areas of
the healthcare field are self-evident, albeit may be little
recognized or little realized by consumers.  One of these factors
is physician demeanor.  Most readers would see a physician's
demeanor as a type of personality exhibited during the course of
the day.  But after the author notes that "[c]ompetition also
takes place in professional demeanor, location, and waiting
time," the word "demeanor" takes on added meaning. The demeanor
of a big-city plastic surgeon, for example, would be markedly
different from that of a rural pediatrician.  Thus, demeanor has
a relationship to the costs, options, services, and payments in
the medical field, and also a relationship to doctor education
and government funding for public health.

Greenberg does not follow his economic data and summarizations
with recommendations or advice. He leaves it to the policymakers
to make decisions on the basis of the raw economic data and
indisputable factors such as physician demeanor.  Nor does he
take a political position when he selects what data to present or
emphasize.  It is this apolitical, unbiased approach that makes
The Health Care Marketplace of most value to readers interested
in understanding the economics of the healthcare field.

Without question, a thorough understanding of the factors
underlying the healthcare marketplace is necessary before changes
can be made so that the health needs of the public are better
met. Conditions that are often seen as intractable because they
are regarded as social or political problems such as the
overcrowding of inner-city health centers or preferential
treatment of HMOs are, in Greenberg's view, problems amenable to
economic solutions. According to the author, the basic economic
principle of supply-and-demand goes a long way in explaining
exorbitantly high medical costs and the proliferation of
specialists.

Greenberg's rigorous economic analysis similarly yields an
informative picture of the workings of other aspects of the
healthcare field.  Among these are hospitals, insurance, employee
health benefits, technology, government funding of health
programs, government regulation, and long-term health care.  In
the closing chapter, Greenberg applies his abilities as a keen-
eyed observer of the economic workings of the U.S. healthcare
field to survey healthcare systems in three other countries:
Canada, Israel, and the Netherlands.  "An analysis of each of the
three systems will explain the relative doses of competition,
regulation, and rationing that might be used in financing of
health care in the United States," he says.  But even here, as in
his economic analyses of the U.S. healthcare system, Greenberg
remains nonpartisan and does not recommend one of these three
foreign systems over the other.  Instead he critiques the
Canadian, Israel, and Netherlands systems -- "none [of which]
makes use of the employer in the provision of health insurance,"
he says -- to prompt the reader to look at the present state and
future of U.S. healthcare in new ways.

The Health Care Marketplace is not a book of limited interest,
and the author's focus on the economics of the health field does
not make for dry reading.   Healthcare is a central concern of
every individual and society in general.  Greenberg's book
clarifies the workings of the healthcare field and provides a
starting point for addressing its long-recognized problems and
moving down the road to dealing effectively with them.

Warren Greenberg is Professor of Health Economics and Health Care
Sciences at George Washington University, and also a Senior
Fellow at the University's Center for Health Policy Research.
Prior to these positions, in the 1970s he was a staff economist
with the Federal Trade Commission.  He has written a number of
other books and numerous articles on economics and healthcare.


                            *********

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 * * *