/raid1/www/Hosts/bankrupt/TCREUR_Public/130812.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, August 12, 2013, Vol. 14, No. 158
Headlines
D E N M A R K
KOBSTAEDERNES FORSIKRING: S&P Affirms 'BBpi' Rating
F I N L A N D
DYNEA INT'L: S&P Withdraws 'B' Long-Term Corp. Credit Rating
G E R M A N Y
IVG IMMOBILIEN: Enters Into Preliminary Agreement with Creditors
KLOECKNER & CO: S&P Alters Outlook to Neg. & Affirms 'B+' Rating
PRAKTIKER AG: 51 Markets to Sell Off Inventories by Oct. 30
G R E E C E
DRYSHIPS INC: Posts US$18.2-Mil. Net Loss in Second Quarter
INTRALOT SA: Fitch Assigns 'BB-' Rating to EUR325MM Eurobond
INTRALOT SA: Moody's Assigns B1 CFR; Outlook Stable
* GREECE: May Need Addt'l Rescue Loans by 2014, Document Shows
I R E L A N D
HARVEST CLO: S&P Assigns 'B' Rating to Class E Notes
TITAN EUROPE 2006-3: Fitch Cuts Rating on Class C Notes to 'D'
I T A L Y
TELECOM ITALIA: Moody's Reviews Ba2 Debt Rating for Downgrade
L U X E M B O U R G
HAYFIN RUBY: S&P Assigns Prelim. 'BB' Ratings to Two Note Classes
LION/GEM: S&P Assigns 'B-' Long-Term Corporate Credit Rating
N O R W A Y
NORTHLAND RESOURCES: Completes Registration of Warrants & Bonds
RESERVOIR EXPLORATION: ION Incurs US$1.6-Mil. Losses on GeoRXT JV
R U S S I A
AHML INSURANCE: Fitch Assigns 'BB' IFS Rating; Outlook Stable
RENAISSANCE CREDIT: Fitch Rates RUB3-Bil. Unsec. Bond Issue 'B'
ROSSIYA INSURANCE: Fitch Downgrades IFS Rating to 'CCC'
* CHUVASH REPUBLIC: Fitch Affirms ST Foreign Curr. Rating at 'B'
S P A I N
PESCANOVA SA: Shareholder Meeting Scheduled for September 12
U K R A I N E
LUHANSK PIPE: Declared Bankrupt; Liquidation Commences
U N I T E D K I N G D O M
FINDUS PLEDGECO: Fitch Assigns 'B-' Issuer Default Rating
GET JUICE: In Liquidation; Put Up for Sale
LADBROKES PLC: Weak H113 Results Highlight High Business Risks
LIBERTY GLOBAL: Moody's Confirms 'Ba3' CFR; Outlook Stable
MK LESLIE: In Administration; About 50 Jobs Affected
PUNCH TAVERNS: Fitch Keeps 'CCC' Ratings on Watch Negative
RESIDENTIAL MORTGAGE 20: Servicer Amendments No Impact on Ratings
TRAVELEX HOLDINGS: S&P Assigns 'B' LT Corporate Credit Rating
VIRGIN MEDIA: Moody's Confirms 'Ba3' Corporate Family Rating
* UK Credit Card Charge-off, Delinquency Indices Stable in Q213
U Z B E K I S T A N
* Moody's Says Outlook on Uzbekistan's Banking Sector Stable
X X X X X X X X
* Fitch Takes Rating Actions on 12 European SF CDOs
* European Investors Trust Central Banks on Smooth QE Exit
* Investors Say Banking Union Will Not Reduce Default Risk
* BOND PRICING: For the Week August 5 to August 9, 2013
*********
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D E N M A R K
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KOBSTAEDERNES FORSIKRING: S&P Affirms 'BBpi' Rating
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Standard & Poor's Ratings Services said it affirmed its
unsolicited public information (pi) insurer financial strength
and counterparty credit ratings on Danish non-life insurer
Kobstaedernes Forsikring (Kobstaedernes) at 'BBpi'.
"The ratings predominantly reflect our view of Kobstaedernes'
fair business risk profile and its less than adequate financial
risk profile. We mainly base our assessment of the business risk
profile on the company's limited competitive position and
operating underperformance relative to domestic peers. Our
opinion of the financial risk profile incorporates the company's
high risk position with the potential for continued substantial
investment and underwriting result volatility offsetting our view
of upper adequate capital and earnings. We combine these factors
to derive a 'bb+' anchor for Kobstaedernes. The ratings on the
company are 'BBpi', as our public information ratings generally
do not bear plus or minus modifiers," S&P said.
Kobstaedernes is a small Denmark-based mutual non-life insurer
that focuses on commercial and private property insurance in
Denmark, which respectively represented 35% and 19% of the
business in 2012. Other business lines include motor (24%) and
accident and health (16%). The group consolidates
Forsikringsaktieselskabet K.a.B. International (not rated),
K.a.B. Ejendomsinvest A/S (not rated), and DiBa Forsikring A/S
(not rated). The latter was acquired in 2011.
"Kobstaedernes faces low industry and country risk, in our
opinion, because it writes most of its business in the stable
Danish non-life market, which is characterized by favorable
profitability. Nevertheless, we believe that low interest rates
and volatile financial markets could strain Kobstaedernes'
earnings. While we recognize moderate product risk exposure for
the Danish non-life sector, mainly emanating from natural
catastrophes, we recognize a higher level of product risk for
Kobstaedernes. This partly stems from its high proportion of
property insurance and its reinsurance business, which both
lead to an increased exposure to natural catastrophes, as
experienced in recent years through high related claims," S&P
said.
"We view Kobstaedernes' competitive position as less than
adequate, reflecting the company's lack of scale, its limited
geographic diversity, and its operating underperformance.
Kobstaedernes had a market share of less than 2% in 2011 in a
very concentrated Danish non-life insurance market where the top
three and top 10 insurers represent about 50% and 90% of the
market, respectively. In 2011, the company acquired DiBa
Forsikring, broadening its geographical spread in Denmark. This,
together with two new business agreements, resulted in a 16%
increase in its gross premium written (GPW) to Danish krone (DKK)
805 million (EUR107.9 million) in 2012. Kobstaedernes'
underwriting results have historically been weaker than those of
Danish non-life peers and the company reported substantially
higher natural catastrophes in 2011, driving our view of the
company's operating underperformance," S&P said.
"We assess the company's capital and earnings as upper adequate.
Over the rating horizon of 2013-2015, we expect Kobstaedernes to
maintain its capital adequacy above our benchmark for the 'BBB'
level, based on Standard & Poor's risk-adjusted capital adequacy
model. However, due to the small absolute size of its capital
base, the company is susceptible to volatility of its capital
adequacy ratio. We believe that regulatory capital remains well
above intervention levels, given that the company reported its
regulatory solvency requirements as covered by a multiple of 7.1x
and its individual solvency requirements, based on Solvency II
principles, as covered by a multiple of 1.85x in 2012," S&P said.
Kobstaedernes reported positive net income of DKK52 million in
2012 compared with a loss of DKK114 million in 2011, mainly due a
more benign natural catastrophe experience and improved
investment results in 2012. The company has reported poor five-
year-average combined (loss and expense) ratios at gross and net
levels at 113.4% and 108.6%, respectively.
"However, in 2012, Kobstaedernes reported an improved net
combined ratio of 98.6% following a more benign claim year, in
particular lower weather-related claims for its direct business.
The group makes limited use of reinsurance, evidenced by a
reinsurance utilization ratio of 9.3% in 2012 (12.5% in 2011),
but we expect further elevated reinsurance cost, driven by the
2011 loss experience, to influence earnings," S&P said.
"Kobstaedernes' risk position reflects high risk in our view. We
base this on its substantial investment in assets carrying
sizable market risk (26% mutual funds, 10% in equity, 6% in
property), which exposes the company to volatility in capital and
earnings. We have no evidence of asset derisking and therefore
assume in our base case that this exposure will remain stable.
Our assessment also reflects the volatility in capital and
earnings caused by the company's exposure to natural
catastrophes, both through its direct and reinsurance business,"
S&P said.
"We consider the company's financial flexibility to be adequate.
The access to external sources of capital is limited due to its
mutual character. However, the company uses bank loans to
support its liquidity needs. Kobstaedernes decreased the debt on
its balance sheet to approximately DKK3 million in 2012 from
approximately DKK27 million in 2011, translating into a low
financial leverage ratio of 0.5% in 2012 from 5.7% in 2011," S&P
said.
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F I N L A N D
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DYNEA INT'L: S&P Withdraws 'B' Long-Term Corp. Credit Rating
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Standard & Poor's Ratings Services withdrew its 'B' long-term
corporate credit rating on Finland-based chemical company Dynea
International Oy at the issuer's request.
"We understand that the sale of Dynea's business units by its
private equity owner, Industri Kapital, has been largely
completed, and that following execution of the planned business
disposals there will be no continuing operations and the
company's liquidation process will be started at the end of 2013.
We understand that Dynea currently has no financial debt, and
that proceeds from any remaining asset sales will be used to
reimburse the owners, notably by repaying the shareholder loan,
of which EUR44 million was outstanding at March 31, 2013," S&P
said.
Dynea manufactured resins and paper overlays, chiefly for the
cyclical furniture and construction markets.
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G E R M A N Y
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IVG IMMOBILIEN: Enters Into Preliminary Agreement with Creditors
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Christiaan Hetzner and Peter Dinkloh at Reuters report that IVG
Immobilien AG said on Saturday the company reached a preliminary
agreement with creditors over a plan that would virtually wipe
out existing shareholders and swap EUR2.15 billion (GBP1.85
billion) in debt for equity.
If shareholders and creditors vote in favor of the plan, the
co-owner of the London Gherkin tower will have only another
EUR2.45 billion in debt on its books and will not have to file
for protection from creditors, Reuters says.
According to Reuters, under the plan outlined in a company
statement, IVG will first reduce its capital, leaving just 1
share for every 200 existing shares. This means current
shareholders will own only 0.5% of the company, Reuters notes.
In the next step, creditors of a 2007 syndicated loan amounting
to EUR1.35 billion and maturing at the end of September next
year, called "SynLoan I", will relinquish their claims in
exchange for shares equating to around 77% of the company's
stock, Reuters discloses.
They will also offer EUR140 million in bridge financing to IVG to
cover additional funding needs until the restructuring deal
closes, Reuters states.
Owners of a EUR400-million convertible bond will receive about
19% of the company and waive their right to a put option that, if
exercised, would have forced IVG to redeem the full amount of the
bond by the end of March, according to Reuters.
Owners of a separate EUR400 million hybrid bond would also waive
their financial claims, Reuters discloses.
Finally, IVG will raise cash by issuing an undisclosed amount of
new shares, Reuters says.
IVG Immobilien is a real estate company based in Bonn, Germany.
KLOECKNER & CO: S&P Alters Outlook to Neg. & Affirms 'B+' Rating
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Standard & Poor's Ratings Services said it revised its outlook on
Germany-based steel distributor Kloeckner & Co. S.E. to negative
from stable.
"At the same time, we affirmed our 'B+' long-term corporate
credit rating on the company. We also raised our issue rating on
the senior unsecured debt instruments issued or guaranteed by
Kloeckner to 'B+' from 'B'. The upgrade is based on our revision
of the recovery rating on these instruments to '4' from '5',
indicating an increase in our expectation of recovery in the
event of a payment default to average (30%-50%) from modest (10%-
30%).
The outlook revision reflects our view that, in the currently
weak economic environment, there is a one-in-three possibility
that Kloeckner's credit metrics will not improve in 2014 to
levels we consider commensurate with the current ratings. This
includes a Standard & Poor's adjusted ratio of funds from
operations (FFO) to debt of about 15% by 2014, against FFO to
debt that we think will stay at less than 10% in 2013 (far below
5% for the 12 months ended June 2013). We also factor in our
opinion of the continued frail macroeconomic and steel
distribution industry environments in Europe, only partly
mitigated by somewhat more supportive operating conditions for
Kloeckner's U.S. operations," S&P said.
"We have consequently revised down our forecast for Kloeckner's
2013 profits, following a weak first half and management's
revised guidance for no significant improvement in the second
half.
We have cut our 2013 reported EBITDA for Kloeckner under our base
case to about EUR140 million before restructuring costs, from
roughly EUR170 million, which would be on a par with the low in
2012, notwithstanding expected cost savings of about EUR60
million this year. Underpinning this is our assumption ofa mid-
single-digit revenue decline, mainly because of thin European
business and possible stronger results from operations in the
U.S., where we expect GDP growth to remain at about 2%.
Improvement in European operations remains highly uncertain,
given our forecast that 2013 GDP will fall by 0.8% in the
eurozone (European Economic and Monetary Union). We expect only a
slight widening in the adjusted EBITDA margin to about 2%,
compared with a low 1.9% in 2012, thanks to the company's
profitability action plan at its European operations and some
growth at the U.S. units," S&P said.
"We assess Kloeckner's business risk profile as "weak," given its
low profitability over the past year, the high cyclicality of its
key steel-consuming end markets--notably construction--and the
high fragmentation and intense competition in the steel
distribution industry, particularly from large steel producers.
The company's business risk profile is underpinned by its strong
position in the European metals distribution market. Additional
support stems from its increased presence in the U.S. after the
acquisition of Macsteel and the construction of a service center
at the ThyssenKrupp plant in Alabama. Kloeckner is streamlining
its European operations, which should result in cost savings of
about EUR60 million by the end of this year, by our estimates,"
S&P said.
"We continue to view Kloeckner's financial risk profile as
"aggressive," due to its volatile FFO and operating cash flows
stemming from fluctuations in volumes, prices, and working
capital. During upswings, high profits do not translate into high
operating cash flows because of increases in working capital,
especially as inventories rise during periods of strong prices
and demand. These constraints are mitigated by Kloeckner's strong
liquidity, a manageable debt maturity profile, and its flexible
operating model, which enable it to reduce working capital during
industry downturns. Although lower demand and prices reduce FFO,
they also reduce net working capital, especially from lower
inventories. This supports cash flow generation and reduces debt,
demonstrating some counter cyclicality. Furthermore, the company
benefits from low capital expenditure because of limited spending
needs to maintain or enhance fixed assets," S&P said.
"The negative outlook reflects our view that there is a one-in-
three possibility that Kloeckner's credit ratios will not improve
over the next 12 months to levels we consider commensurate with
the current ratings, including adjusted FFO to debt of about 15%.
Under our base-case scenario, however, we still expect the
company to achieve this target in 2014, assuming EBITDA recovers
to about EUR200 million in 2014 on the back of restructuring
efforts and some market improvement. For 2013, however, we
anticipate that Kloeckner's metrics will be far below this target
ratio, due to a still-difficult market environment and
restructuring cash outlays. We also factor into our forecasts
that Kloeckner will act cautiously when considering further
large-scale acquisitions, as it did during the last downturn,"
S&P said.
"We could lower the rating if operating results did not improve
from the 2012-2013 trough and adjusted FFO to debt consequently
remained below 10% on a prolonged basis. Any debt-financed
acquisition in the current challenging market environment or
weakening of the company's current strong liquidity position
would also pressure the rating.
We could consider revising the outlook to stable if Kloeckner's
restructuring efforts were successful and operating performance
started to show upside, most likely from early 2014, and
Kloeckner's credit ratios improved to levels we consider
commensurate with the current rating, including adjusted FFO to
debt of about 15%,"S&P said.
PRAKTIKER AG: 51 Markets to Sell Off Inventories by Oct. 30
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Mariajose Vera at Bloomberg News reports that Christopher Seagon,
interim insolvency administrator of nine companies from Praktiker
Group, said in an e-mailed statement that 51 Praktiker markets
will sell-off inventories by Oct. 30 at the latest.
According to Bloomberg, the administrator said it is not to be
expected that any potential parties interested in part or total
of Praktiker/Max Bahr would continue operations at those markets
under the Praktiker/Max Bahr brand.
A total of 1,500 employees of those 51 markets will not be laid
off, Bloomberg says.
Mr. Seagon sees the possibility that investors from different
industries would be interested in taking over the employees and
sites, Bloomberg notes.
The administrator has received corresponding expressions of
interest, Bloomberg discloses. He said the remaining stores will
receive new goods, Bloomberg relates.
As reported by the Troubled Company Reporter-Europe on August 1,
2013, Reuters related that the insolvency administrators of
Praktiker on July 30 said they have stepped up the search for an
investor by appointing Macquarie as advisor. The administrators
hope that by finding an investor they can secure as many jobs and
stores as possible at the group, which has around 20,000 full and
part-time employees, Reuters disclosed. They said they did not
expect any results from the search before the start of September,
but that all the 300 stores affected by the insolvency would
continue trading for now, Reuters related. Of the 300 stores in
the insolvency process, 168 are Praktiker stores, 78 are Max Bahr
stores and a further 54 are Praktiker-branded shops that have
recently been converted to the Max Bahr signage, Reuters noted.
Praktiker AG is a German home-improvement retailer.
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G R E E C E
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DRYSHIPS INC: Posts US$18.2-Mil. Net Loss in Second Quarter
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DryShips Inc., and through its majority owned subsidiary, Ocean
Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling
services, on Aug. 7 reported unaudited financial and operating
results for the second quarter ended June 30, 2013.
Second Quarter 2013 Financial Highlights
* For the second quarter of 2013, the Company reported a net
loss of US$18.2 million, or US$0.05 basic and diluted loss per
share.
* The Company reported Adjusted EBITDA of US$112.3 million for
the second quarter of 2013, as compared to US$140.2 million
for the second quarter of 2012.
Recent Events
* On August 1, 2013, the Company entered into two supplemental
agreements related to two bank loans dated October 5, 2007 and
March 13, 2008, respectively, to amend certain terms and cure
a shortfall in the security cover ratio, and pledged an
aggregate of 5,450,000 of its shares of Ocean Rig as
additional security under the loans.
* On July 30, 2013, Ocean Rig signed definitive documentation
with Total E&P Congo, following the previously announced
Letter of Award, for its ultra deepwater drillship Ocean Rig
Apollo. The contract is for a three-year drilling campaign
offshore West Africa, with an estimated backlog of
approximately US$677 million, and is expected to commence in
the first quarter of 2015.
* On July 19, 2013, Ocean Rig received a Letter of Award for its
ultra deepwater drillship Ocean Rig Skyros from a major oil
company. The Letter of Award is for a six-year contract for
drilling offshore West Africa, with an estimated backlog of
approximately US$1.3 billion. The contract is expected to
commence in direct continuation of the previous contract for
the Ocean Rig Skyros with Total E&P Angola before the first
quarter of 2015.
* In July 2013, Ocean Rig entered into a US$1.9 billion senior
secured term loan facility, comprised of tranche B-1 term
loans in an aggregate principal amount equal to US$1,075.0
million and tranche B-2 term loans in an aggregate principal
amount equal to US$825.0 million, with respective maturity
dates in the first quarter of 2021 and the third quarter of
2016.
* On July 10, 2013, Ocean Rig entered into a drilling contract
with Total E&P Angola for a five-well program or a minimum of
275 days for its ultra deepwater drillship Ocean Rig Skyros
for drilling offshore West Africa, with an estimated backlog
of approximately US$190 million. The Ocean Rig Skyros is
expected to commence this contract upon delivery from the
shipyard in November 2013.
* On May 23, 2013 and June 18, 2013, the Company took delivery
of its two VLOCs under construction in China and drew down the
maximum amount available under the secured term loan facility
with China Development Bank.
George Economou, Chairman and Chief Executive Officer of the
Company, commented:
"We continue to be defensive about the short-term prospects of
the shipping markets. Asset prices seem to be holding up but we
do not expect any positive development in drybulk and tanker
charter rates this year. As a result we have focused this year
on reducing our breakeven levels. We lowered our newbuilding
capital expenditures significantly and are now focusing on other
areas.
As part of this effort, during the second quarter of 2013, we
accelerated our discussions with our lenders to lower our debt
service requirements. So far, we concluded an agreement with a
lender to, among other things, defer certain principal
installments until maturity. As part of this transaction, we
provided a pledge of Ocean Rig shares, underlining our commitment
to reach viable solutions with our lenders.
We are cautiously optimistic expecting a sustainable recovery in
2014 and beyond and believe DryShips is well positioned to take
advantage of the ensuing recovery in charter rates in the drybulk
and tanker sectors.
In terms of our shareholding in Ocean Rig UDW Inc., we are
pleased with Ocean Rig's solid results for the quarter. In
addition, Ocean Rig's consummation of the US$1.9 billion term
loan transaction was vital, not only in terms of the net cash
flow it will generate, but also in terms of the additional
financial flexibility for Ocean Rig that it will provide. As the
largest shareholder in Ocean Rig, we believe it is optimally
positioned in the ultra-deepwater drilling market and we continue
to be positive about the prospects for Ocean Rig, whose contract
backlog currently stands at approximately US$6.0 billion."
Financial Review: 2013 Second Quarter The Company recorded a net
loss of US$18.2 million, or US$0.05 basic and diluted loss per
share, for the three-month periods ended June 30, 2013 and 2012,
respectively. Adjusted EBITDA was US$112.3 million for the
second quarter of 2013, as compared to US$140.2 million for the
same period in 2012.
For the drybulk carrier segment, net voyage revenues (voyage
revenues minus voyage expenses) amounted to US$42.4 million for
the three-month period ended June 30, 2013, as compared to
US$58.6 million for the three-month period ended June 30, 2012.
For the tanker segment, net voyage revenues amounted to US$9.1
million for the three-month period ended June 30, 2013, as
compared to US$8.5 million for the same period in 2012. For the
offshore drilling segment, revenues from drilling contracts
decreased by US$3.7 million to US$259.8 million for the three-
month period ended June 30, 2013, as compared to US$263.5 million
for the same period in 2012.
Total vessels', drilling rigs' and drillships' operating expenses
and total depreciation and amortization decreased to US$142.5
million and increased to US$85.8 million, respectively, for the
three-month period ended June 30, 2013, from US$167.3 million and
US$84.1 million, respectively, for the three-month period ended
March 31, 2012. Total general and administrative expenses
remained approximately the same at US$37.2 million in the second
quarters of 2013 and 2012, respectively.
Interest and finance costs, net of interest income, amounted to
US$56.0 million for the three-month period ended June 30, 2013,
compared to US$49.8 million for the three-month period ended
June 30, 2012.
Settlement with Cairn Energy
In July 2013, Ocean Rig reached an out of court settlement with
Cairn Energy to receive compensation amounting to US$5.0 million
against an outstanding receivable of US$11.0 million. As a
result, during the second quarter of 2013, Ocean Rig wrote off
US$6.0 million. This agreement is subject to definitive
documentation.
About DryShips Inc.
Headquartered in Athens, Greece, DryShips Inc. (NASDAQ: DRYS) is
an owner of drybulk carriers and tankers that operate worldwide.
Through its majority owned subsidiary, Ocean Rig UDW Inc.,
DryShips owns and operates 10 offshore ultra deepwater drilling
units, comprising of 2 ultra deepwater semisubmersible drilling
rigs and 8 ultra deepwater drillships, 3 of which remain to be
delivered to Ocean Rig during 2013 and 1 is scheduled for
delivery during 2015. DryShips owns a fleet of 46 drybulk
carriers (including newbuildings), comprising of 12 Capesize, 28
Panamax, 2 Supramax and 4 Very Large Ore Carriers (VLOC) with a
combined deadweight tonnage of about 5.1 million tons, and 10
tankers, comprising 4 Suezmax and 6 Aframax, with a combined
deadweight tonnage of over 1.3 million tons.
The Company reported a net loss of US$288.6 million on
US$1.210 billion of revenues in 2012, compared with a net loss of
US$47.3 million on US$1.078 billion of revenues in 2011.
The Company's balance sheet at Dec. 31, 2012, showed
US$8.878 billion in total assets, US$5.010 billion in total
liabilities, and shareholders' equity of US$3.868 billion.
Going Concern Doubt
Ernst & Young (Hellas), in Athens, Greece, expressed substantial
doubt about DryShips Inc.'s ability to continue as a going
concern, citing the Company's working capital deficit of
US$670 million at Dec. 31, 2012, and in addition, the non-
compliance by the shipping segment with certain covenants of its
loan agreements with banks.
As of Dec. 31, 2012, the shipping segment was not in compliance
with certain loan-to-value ratios contained in certain of its
loan agreements. In addition, as of Dec. 31, 2012, the shipping
segment was in breach of certain financial covenants, mainly the
interest coverage ratio, contained in the Company's loan
agreements relating to US$769,098,000 of the Company's debt. As
a result of this non-compliance and of the cross default
provisions contained in all bank loan agreements of the shipping
segment and in accordance with guidance related to the
classification of obligations that are callable by the creditor,
the Company has classified all of its shipping segment's bank
loans in breach amounting to US$941,339,000 as current at
Dec. 31, 2012.
INTRALOT SA: Fitch Assigns 'BB-' Rating to EUR325MM Eurobond
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Fitch Ratings has assigned Intralot SA's EUR325 million 9.75%
Eurobond due in August 2018 issued by the company's wholly-owned
entity Intralot Finance Luxembourg S.A. a senior unsecured rating
of 'BB-' with a Recovery Rating of 'RR3'.
The rating action follows the review of the final terms of the
bond issue conforming to information already received by Fitch
apart from the higher than expected size of the bond placement
which has been raised by EUR25 million and the addition of a debt
incurrence leverage covenant which is considered positive for
bondholders.
Intralot's Long-term Issuer Default Rating (IDR) is 'B+' with a
Stable Outlook.
KEY RATING DRIVERS
Senior Unsecured Ranking
The EUR325 million bond has been issued by Intralot Finance
Luxembourg S.A., a Luxembourg-based financial vehicle wholly
owned by Intralot through Intralot Global Securities B.V. ranking
as a senior unsecured obligation pari passu with its bank debt.
It benefits from guarantees from Intralot SA and by the main
operating subsidiaries of Intralot Global Securities B.V. These
guarantors will account for approximately 70% of group assets and
EBITDA.
Bond Notched Up from IDR
Fitch considers that expected recoveries upon default would be
maximized in a going-concern scenario rather than in a
liquidation scenario given the asset-light nature of Intralot's
business. Fitch has applied a discount of 40% to Intralot's FY12
consolidated EUR177 million EBITDA to reflect downside risks as
well as the material minority interests in some of its
subsidiaries and a 4x distressed multiple to derive a distressed
enterprise value of EUR431 million. Taking into account the new
debt structure including the EUR150 million revolving credit
facility (RCF) as fully drawn, we assess the recovery rate for
the senior notes in the 51%-70% range ('RR3') leading to a one-
notch uplift to the senior unsecured rating from the IDR of 'B+'.
Adequate Post-Issuance Liquidity
Intralot will use the bond proceeds to repay the principal amount
of EUR140 million outstanding of the convertible bond maturing in
December 2013 plus the applicable redemption premium and to
refinance EUR174 million of bank debt due in December 2014. As a
result, Intralot now has no more debt due in 2013 and a more
manageable amount of EUR80 million due under the syndicated
facility in December 2014. Most of its remaining debt is the bond
due in 2018. Liquidity is further supported by pro-forma EUR100
million of cash and an undrawn EUR150 million RCF under the 2014
syndicated facility
Profit Stability, Appetite for Growth
Intralot's IDR reflects its established track record of winning
and retaining high profile gaming contracts, solid scope for
steady EBITDA growth from its Licensed Operations division, a
well-diversified contract portfolio and its currently moderate
leverage. These positives are contrasted by the low credit
quality of some of the countries in which it operates and an
increasingly spread out business strategy that could require
further investments in future, thus compromising free cash flow
(FCF) generation capability.
RATINGS SENSITIVITIES
Positive pressure on the ratings would occur if Intralot met most
of the following rating factors on a sustained basis:
-- Positive EBITDA growth derived from stronger return on capital
on existing and future contracts with limited capex outlays.
-- Funds from operations (FFO)-based net lease adjusted leverage
reducing sustainably below 3.0x, with cash deposited
predominantly in investment grade-rated counterparties.
-- FFO fixed charge cover above 4.0x unaided by favorable
interest carry.
-- Evidence of sustained positive FCF generation.
Negative pressure on the ratings would occur if Intralot met most
of the following rating factors on a sustained basis:
-- Evidence that new contracts or renewals are occurring at
materially more onerous conditions for Intralot, such as
lower margins, large upfront concession fees or capex outlays.
-- FFO-based net lease adjusted leverage permanently above 3.5x.
-- FFO fixed charge cover below 2.0x.
INTRALOT SA: Moody's Assigns B1 CFR; Outlook Stable
---------------------------------------------------
Following the successful placement of EUR325 million senior notes
and the review of the final bond documentation, Moody's has
assigned a definitive B1 Corporate Family Rating (CFR) and B1-PD
Probability of Default Rating (PDR) to Intralot S.A. At the same
time, Moody's assigned a definitive B1 (LGD4, 50%) rating to the
EUR325 million senior unsecured notes issued by Intralot Finance
Luxembourg S.A. The outlook on the ratings is stable.
Ratings Rationale:
The B1 ratings primarily reflect (i) Intralot's leading market
position as a global supplier of integrated gaming systems and
services; (ii) Intralot's globally diversified activities with
presence in 36 countries, although with some dependency on some
individual countries; (iii) a good visibility and predictability
of future revenue generation given a large number of long-term
contracts; (iv) an experienced management team with a proven
track record of winning and retaining new contracts; (v) growth
potential from market liberalization especially in Asia as well
as (vi) a moderate financial leverage. On the more negative side,
the rating takes into account (vii) Intralot's significant
exposure to emerging market risk where it generates a good share
of group revenues and EBITDA (e.g. Greece, Argentina, Jamaica,
Morocco); (viii) Intralot's weak historic free cash flow
generation with negative free cash flows over the period 2009-
2012 and only a marginally positive free cash flow in 2011; (ix)
a significant erosion in profit margins from the peak levels
achieved in 2007, however still in line with its major peers; (x)
Intralot's high fluctuation in capital expenditures resulting
from business growth or new contract wins; (xi) the regulatory
risk regarding the gaming market and tax regime in various
jurisdictions in which Intralot operates as well as (xii) some
exposure to currency fluctuation due to the fact that the
majority of debt is denominated in EUR whilst a significant part
of cash flows in currencies other than the EUR with possibly some
fluctuation in exchange rates over time.
Furthermore, the rating considers that the consolidated reported
EBITDA has to be adjusted for minority stakes and needs to be
shared with partners which is not adequately reflected in the
calculation of leverage metrics based on consolidated results
(e.g. Debt/EBITDA).
This also applies to the reported cash balance of around EUR140
million, out of which a significant part is located in
subsidiaries with substantial minority interest. Despite the fact
that Intralot is based in Greece, the current rating reflects (1)
the group's modest reliance on its Greek operations, which
represented around 5.6% of group's revenues in fiscal year 2012;
(2) the fact that Intralot will raise all its financing needs and
service its debt outside of Greece (i.e., the group generates
most of its cash flows outside of Greece and will use them to
service the note interest and principal payments before being
passed to the Greek parent company); and (3) that the bond and
bank facilities will be governed under New York and English law.
Therefore, the assigned rating is higher than the country ceiling
of Greece. However, the rating is also negatively impacted by the
high dependence of Intralot on other markets with generally low
sovereign ratings, such as Argentina (B3 negative); Jamaica (Caa3
stable) or Morocco (Ba1 negative).
Rating Outlook:
The stable outlook assumes a pro forma leverage of 3.2x for the
current fiscal year and a gradual de-leveraging over the coming
years driven predominantly by a steady increase in EBITDA with a
preservation of current EBITDA margins and positive free cash
flow generation from 2014 onwards applied to debt reduction. In
addition the stable outlook anticipates Intralot to sustain a
solid liquidity profile.
What Could Change The Ratings Down/Up
The B1 ratings could be downgraded in case of (i) Debt/EBITDA (as
adjusted by Moody's) exceeding 4.0x in any year going forward;
(ii) interest coverage measured as EBIT/ interest expense (as
adjusted by Moody's) falling below 2.0x; or the inability to
generate positive free cash flows (as adjusted by Moody's) from
2014 onwards. Also, a weakening of the company's short term
liquidity could result in a downgrade. An upgrade over the next
12-18 months is rather unlikely, however the ratings could be
upgraded in case of (i) an improved business profile with a
higher exposure to more regulated markets; (ii) Intralot being
able to generate positive free cash flows on a sustainable basis;
as well as (iii) its leverage ratio measured as Debt/EBITDA (as
adjusted by Moody's) falling well below 3.0x; and (iv) interest
coverage measured as EBIT/ interest expense (as adjusted by
Moody's) exceeding 3.5x. Also for an upgrade Moody's would expect
a higher cash balance available at subsidiaries that are fully
owned by Intralot.
Liquidity:
Moody's deems Intralot's liquidity profile as adequate. Following
the successful placement of the notes, cash and cash equivalents
available are anticipated to amount to EUR101 million (although
approximately only half of that amount is assumed to be readily
available to Intralot), together with the unused EUR150 million
under the revolving credit facility and cash flows from
operations are expected to be sufficient to cover the expected
cash needs resulting from working capital needs, capital
expenditures, dividend payout and debt maturities over the next
12-18 months. Moody's also anticipates that Intralot will be able
to maintain a comfortable headroom under its financial covenants.
Structural Considerations:
The B1 rating on the senior unsecured notes reflects their
position as unsecured obligations within Intralot's capital
structure. The notes benefit from unconditional and irrevocable
guarantees from Intralot S.A. and certain subsidiaries of
Intralot S.A. which represented approximately 68% of Intralot's
consolidated total assets and generated approximately 67% of
Intralot's consolidated EBITDA over the last twelve months period
ended March 31, 2013. Moody's anticipates the guarantors' assets
as well as EBITDA to exceed 70% of the group's consolidated
figures respectively going forward. In Moody's debt waterfall
analysis the notes rank on the same level as all of the issuer's
existing indebtedness including trade payables and pension
obligations.
Assignments:
Issuer: Intralot Finance Luxembourg S.A.
Senior Unsecured Regular Bond/Debenture Feb 15, 2018, Assigned B1
Issuer: Intralot S.A.
Probability of Default Rating, Assigned B1-PD
Corporate Family Rating, Assigned B1
Outlook Actions:
Issuer: Intralot Finance Luxembourg S.A.
Outlook, Remains Stable
Issuer: Intralot S.A.
Outlook, Remains Stable
Affirmations:
Issuer: Intralot Finance Luxembourg S.A.
Senior Unsecured Regular Bond/Debenture Feb 15, 2018, Affirmed a
range of LGD4, 50 %
The principal methodology used in these ratings was the Global
Gaming published in December 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 Athens, Greece, Intralot is a leading vendor in
the gaming sector and at the same time a licensed gaming operator
through 28 individual licenses across 16 jurisdictions. Intralot
designs, develops, operates and supports custom-made gaming
solutions and provides innovative content, services and
technology to lottery and gaming organizations on a global scale
with presence across 55 jurisdictions in 36 countries worldwide.
In the 12 months ended March 31, 2013 Intralot generated revenues
of approximately EUR1.38 billion and reported an EBITDA of EUR191
million.
* GREECE: May Need Addt'l Rescue Loans by 2014, Document Shows
--------------------------------------------------------------
According to Reuters' Noah Barkin, weekly magazine Der Spiegel,
citing a document from the Bundesbank, reported on Sunday that
Germany's central bank expects that Greece will need additional
rescue loans from its European partners by the start of 2014 at
the very latest.
The report could rekindle a debate in Germany about whether
Chancellor Angela Merkel is deliberately playing down the
prospects of further help for Greece before a September 22
election in which she is favored to win a third term, Reuters
says.
Opposition parties, notably Social Democrat (SPD) challenger
Peer Steinbrueck, have accused her of covering up the risks that
German taxpayers will have to fund further euro zone bailouts,
Reuters relates.
Greece has received two European Union/International Monetary
Fund bailouts totaling EUR240 billion and has drawn down 90% of
those funds, Reuters discloses. The package is due to expire at
the end of 2014, Reuters states.
Ms. Merkel and her finance minister Wolfgang Schaeuble have said
repeatedly that the Greek rescue is on track, rejecting the
suggestion that extra aid, or debt relief, will be needed,
Reuters notes.
According to Reuters, the Spiegel report cited what it said was a
Bundesbank report for the German finance ministry and the IMF.
In the document, the bank predicts that European governments
"will certainly agree a new aid program for Greece" by early 2014
at the latest, Spiegel, as cited by Reuters, said.
According to Reuters, the Bundesbank, the report says, also
describes the risks associated with the existing aid package as
"extremely high" and criticizes the approval last month of a
EUR5.8 billion aid tranche to Greece by the "troika" of lenders
-- the European Central Bank, European Commission and IMF -- as
"politically motivated".
=============
I R E L A N D
=============
HARVEST CLO: S&P Assigns 'B' Rating to Class E Notes
----------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
credit ratings to Harvest CLO VII Ltd.'s class A, B, C, D, and E
senior secured floating-rate notes. At closing, Harvest CLO VII
will also issue unrated subordinated notes.
"Our preliminary ratings address timely interest and principal on
the class A and B notes, and ultimate interest and principal on
the class C, D, and E notes.
CAPITAL STRUCTURE
Notional Preliminary
Class (mil.EUR) Interest Deferrable OC (%) rating
A 177.0 6mE+1.35% No 41.00 AAA (sf)
B 34.0 6mE+1.75% No 29.67 AA+ (sf)
C 20.0 6mE+2.80% Yes 23.00 A (sf)
D 13.6 6mE+3.70% Yes 18.47 BBB (sf)
E 23.0 6mE+5.50% Yes 10.80 BB (sf)
Subordinated 42.0 N/A N/A 0.00 NR
6mE - Six-month Euro Interbank Offered Rate (EURIBOR).
N/A - Not applicable.
OC - Overcollateralization = [portfolio target par amount -
tranche notional (including notional of all senior
tranches)]/portfolio target par amount.
NR - Not rated.
"At the end of the ramp-up period, we understand that the
portfolio will represent a well-diversified pool of corporate
credits, with a fairly uniform exposure to all of the credits.
Therefore, we have conducted our credit and cash flow analysis by
applying our 2009 corporate cash flow collateralized debt
obligation criteria (see "Update To Global Methodologies And
Assumptions For Corporate Cash Flow And Synthetic CDOs,"
published on Sept. 17, 2009)," S&P said.
"In our cash flow analysis, we used a portfolio target par amount
of EUR300.0, assuming that 10% of the portfolio will comprise
fixed-rate assets, using the covenanted weighted-average spread
and weighted-average coupon (4.4% and 5.0% respectively), and the
covenanted weighted-average recovery rates at each rating level.
The portfolio's replenishment period will end 3.9 years after
closing, and the portfolio's average maturity date will, at all
times, fall before 2021," S&P said.
Elavon Financial Services Ltd. will be the bank account provider
and custodian. The issuer will enter into asset swaps with
either Credit Suisse International, or JP Morgan Securities PLC
to hedge the foreign exchange risk arising from non-euro-
denominated assets.
"At closing, we anticipate that the participants' downgrade
remedies will be in line with our current counterparty criteria,"
S&P said.
"At closing, we understand that the issuer will be in line with
our bankruptcy-remoteness criteria under our European legal
criteria," S&P said.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our preliminary ratings
are commensurate with the available credit enhancement for each
class of notes," S&P said.
"Harvest CLO VII is a cash flow collateralized loan obligation
(CLO) transaction securitizing a portfolio of primarily senior
secured loans made to speculative-grade European corporates. 3i
Debt Management Investments Ltd. will manage the transaction,"
S&P said.
RATINGS LIST
Preliminary Ratings Assigned
Harvest CLO VII Ltd.
EUR309.6 Million Senior Secured Floating-Rate and
Subordinated Notes
Class Rating Amount
(mil. EUR)
A AAA (sf) 177.0
B AA+ (sf) 34.0
C A (sf) 20.0
D BBB (sf) 13.6
E BB (sf) 23.0
Subordinated NR 42.0
NR-Not rated.
TITAN EUROPE 2006-3: Fitch Cuts Rating on Class C Notes to 'D'
--------------------------------------------------------------
Fitch Ratings has downgraded Titan Europe 2006-3 plc's class C
commercial mortgage-backed notes as follows:
-- EUR34.2m class C (XS0257769090) downgraded to 'Dsf' from
'Csf'; Recovery Estimate 0%
KEY RATING DRIVERS
The downgrade of the class C notes reflects the EUR16 million
allocation of loss to the class C notes on the July 2013 interest
payment date (IPD). This follows the sale of the office property
securing the Rivierstaete loan.
Net recoveries from the sale of the property were EUR18.5 million
(EUR18.1 million was allocated as principal), resulting in a
EUR29.2 million loss allocation. EUR1.5 million of the loan's
balance remains outstanding as Fitch understands that there is
the possibility of further recoveries via tax credits that may be
due to the borrower. The initial EUR29.2 million loss was
allocated reverse sequentially to the notes, resulting in a full
write-down of class D notes, and a partial write-down of the
class C notes.
RATING SENSITIVITIES
The EUR16.0 million loss allocation to the class C notes
represented 32% of its outstanding balance. Fitch believes that
the eventual resolution of a number of other loans within the
portfolio will eventually lead this tranche to being fully
written-down to zero.
Fitch will continue to monitor the transaction's performance.
=========
I T A L Y
=========
TELECOM ITALIA: Moody's Reviews Ba2 Debt Rating for Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
ratings of all debts for (or guaranteed by) Telecom Italia
S.p.A., and all supported debts within its family of issuers,
including the Baa3/(P)Baa3 senior unsecured and the Ba2
subordinated ratings. The rating action follows the company's
announcement of its Q2 2013 results, updated management outlook
and revised financial guidance.
"Our decision to place Telecom Italia's ratings on review for
downgrade is driven primarily by the deterioration in its
domestic revenues and EBITDA resulting from the worsening
economy, higher unemployment, adverse regulatory effects and more
intense competition in Italy," says Carlos Winzer, a Moody's
Senior Vice President and lead analyst for Telecom Italia. "The
company's inability to meet its domestic and group EBITDA targets
has also raised concerns."
Ratings Rationale:
The rating review reflects the deterioration in Telecom Italia's
domestic revenues and EBITDA, as shown in its Q2 2013 results, as
well as a failure to achieve some of its committed operating
performance targets. This negative development is despite the
group having partially mitigated the effects of a very tough
market. As a result, Telecom Italia is likely to struggle to
achieve its reported net financial position target of under EUR27
billion by year end.
During the rating review, Moody's will assess the negative effect
on the company of the continuing tougher-than-expected domestic
mobile business in 2013, which has been aggravated by intensified
competitive pressure and adverse regulation. An important
consideration will be the extent to which management can
compensate for the increased risk by implementing measures to
strengthen the balance sheet and reduce financial risk. Moody's
will also assess if these measures would be sufficient and timely
enough to fully offset the company's increased business risk.
Moody's notes that Telecom Italia will continue to face
substantial challenges in 2013, including the ongoing recession
in Italy, adverse regulation and rising levels of competition,
all of which have served to erode the company's domestic revenues
and EBITDA. In addition, Moody's will assess the extent to which
Telecom Italia will be able to meet its commitments to reduce
group debt and maintain ratios within current rating limits,
given that operating cash flow will likely continue to
deteriorate at a faster-than-expected pace. Although the group's
international diversification partially mitigates the domestic
pressure on its revenues, limited cash up-streaming and the
expected lower growth rates at its Brazilian subsidiary Telecom
Italia Mobile (TIM) Brazil could challenge Telecom Italia's
ability to meet group financial guidance.
Telecom Italia's management confirmed that the group's revenue
trend for 2013 would remain stable. However, it readjusted its
EBITDA guidance to a mid-single-digit decline for 2013 at group
level and a high-single-digit decline for domestic operations.
The company's management is facing difficulties in forecasting
highly volatile domestic mobile revenues in a very challenging
market, as reflected by its readjustment of its EBITDA guidance
less than three months after its previous guidance commitments.
Telecom Italia's earlier cut in dividends, to EUR450 million per
annum through 2015, will most likely not be sufficient to offset
the negative effect on its cash flow of a weaker-than-expected
performance and the operating challenges ahead. This strategy
also leaves the company with fewer internal options to protect
its financial profile in the event of a further sustained
deterioration in its operating performance.
Moody's remains concerned that Telecom Italia is facing stronger
headwinds than previously expected in its efforts to improve its
financial ratios. Given the challenging operating conditions in
Italy, and limited options to strengthen the company's balance
sheet, management may find it difficult to meet its updated
deleveraging commitment of a reported net financial
position/EBITDA of below 2.0x in the next 24 months.
Moody's considers that, for the time being, Telecom Italia's Baa3
rating is supported by the company's (1) scale; (2) integrated
telecoms business model, with strong market positions in both the
fixed and mobile segments; (3) geographical diversification,
mainly as a result of its presence in Brazil and Argentina; (4)
continued commitment to debt reduction and financial discipline;
and (5) high operating margins, ongoing operational expenditure
(opex) reductions and strong liquidity.
The Baa3 rating also factors in (1) the deterioration in Telecom
Italia's operating performance, including an expected further
EBITDA decline this year; (2) management's plan to partially
offset the weakened performance with a lower debt level; and (3)
the company's outlook for the 2013-15 period.
What Could Change The Rating Down/Up
Prior to initiating the review, Moody's had indicated that
downward pressure on the rating could potentially result if (1)
Telecom Italia were to deviate from management's announced debt
reduction plan, which includes a reported net financial position
of less than EUR27 billion by year-end 2013; and (2) the
company's overall financial metrics do not gradually improve in
line with their plan, which includes positive low-single-digit
revenue and a positive EBITDA compound annual growth rate through
2015. More specifically, Moody's had noted that a rating
downgrade could result if the company failed to sustainably
reduce its net adjusted debt/EBITDA ratio to below 2.8x.
In view of this action, Moody's does not currently anticipate
upward rating pressure. However, prior to the review process
being initiated, Moody's had indicated that it could consider a
stabilization of the outlook if the company delivered improved
financial metrics on the back of a supportive operating
environment, including a net adjusted debt/EBITDA comfortably
below 2.8x. Moody's had also noted that upward pressure could
result over time if Telecom Italia's net adjusted debt/EBITDA
were to improve to below 2.5x.
List Of Affected Ratings:
Ratings on review:
Issuer: Telecom Italia S.p.A.
Senior unsecured medium-term note programme at (P)Baa3
Senior unsecured regular bond/debenture at Baa3
Subordinated hybrid instrument rating at Ba2
Ratings on review:
Issuer: Olivetti Finance N.V.
Senior unsecured regular bond/debenture at Baa3
Ratings on review:
Issuer: Telecom Italia Capital S.A.
Senior unsecured medium-term note programme at (P)Baa3
Senior unsecured regular bond/debenture at Baa3
Senior unsecured shelf at (P)Baa3
Ratings on review:
Issuer: Telecom Italia Finance, S.A.
Senior unsecured medium-term note programme at (P)Baa3
Senior unsecured regular bond/debenture at Baa3
Ratings on review:
Issuer: Telecom Italia S.p.A. (old)
Senior unsecured bank credit facility at Baa3
Outlook Actions:
Issuer: Olivetti Finance N.V.
Outlook, Changed To Rating Under Review From Negative
Issuer: Telecom Italia Capital S.A.
Outlook, Changed To Rating Under Review From Negative
Issuer: Telecom Italia Finance, S.A.
Outlook, Changed To Rating Under Review From Negative
Issuer: Telecom Italia S.p.A.
Outlook, Changed To Rating Under Review From Negative
Issuer: Telecom Italia S.p.A. (old)
Outlook, Changed To Rating Under Review From Negative
Principal Methodology
The principal methodology used in these ratings was the Global
Telecommunications Industry published in December 2010.
Telecom Italia Group (consisting of Telecom Italia S.p.A. and its
subsidiaries) is the leading integrated telecommunications
provider in Italy, delivering a full range of services and
products, including telephony, data exchange, interactive content
and information and communications technology solutions. It is
also the operator of one of the three national TV networks. In
addition, the group is one of the top telecoms players in
Argentina and in the Brazilian mobile market, operating through
its subsidiary Telecom Italia Mobile (TIM) Brazil. Telecom
Italia's major shareholder is a consortium (Telco S.p.A.)
composed of Telefonica S.A. (Baa2 negative), the insurance
company Generali, and the banks Mediobanca and Intesa Sanpaolo.
This consortium holds a 22.4% stake in Telecom Italia. For 2012,
Telecom Italia reported EUR29.5 billion in revenue and EUR11.7
billion in EBITDA.
===================
L U X E M B O U R G
===================
HAYFIN RUBY: S&P Assigns Prelim. 'BB' Ratings to Two Note Classes
-----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its preliminary
credit ratings to HAYFIN RUBY II LUXEMBOURG S.C.A.'s variable
funding note (VFN) and class A-1, A-2, B-1, B-2, C-1, C-2, D-1,
D-2, E-1, and E-2 notes. At closing, HAYFIN RUBY II LUXEMBOURG
will also issue unrated class F-1 and F-2 notes (see list below).
"We have assessed the collateral portfolio's credit quality. We
consider that the portfolio at closing will be diversified,
primarily comprising euro- and British pound sterling-denominated
speculative-grade senior secured and second-lien loans and
bonds," S&P said.
"Our ratings reflect the available credit enhancement for the
rated notes through the subordination of cash flows that are
payable to the junior classes of notes. We subjected the
preliminary capital structure to our cash flow analysis to
determine the break-even default rate for each rated class of
notes. We used the target par amount, the covenanted weighted-
average spread, and the covenanted weighted-average recovery
rates in our cash flow analysis. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios and
foreign currency stresses for each liability rating category,"
S&P said.
"Our credit and cash flow analysis shows that the available
credit enhancement for each class of notes was sufficient to
withstand the defaults that we applied in our supplemental tests
(excluding excess spread) outlined in our 2009 corporate
collateralized debt obligation (CDO) criteria," S&P said.
"In our analysis, we considered that the transaction documents'
replacement and remedy mechanisms will adequately mitigate the
transaction's exposure to counterparty risk under our current
counterparty criteria.
Following the application of our nonsovereign ratings criteria,
we consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned preliminary rating
levels," S&P said.
This is because the concentration of the pool comprising assets
in countries rated lower than 'A-' is limited to 5% of the
aggregate collateral balance.
"We expect that the transaction's legal structure will be
bankruptcy-remote, in accordance with our European legal
criteria," S&P said.
HAYFIN RUBY II LUXEMBOURG is a refinancing of the HayFin Ruby
Luxembourg transaction that we rated in October 2011. The
transaction is a European cash flow multicurrency CLO,
securitizing a revolving pool of euro-and British pound sterling-
denominated senior secured and second-lien loans and bonds.
Haymarket Financial LLP is the collateral manager.
Therefore, in addition to acquiring currency call options and
purchasing any additional collateral obligations on the closing
date, the issuer will use the net proceeds of the issuance of all
of the notes to redeem the notes issued under the note issuance
facility and the subordinated note issuance facility under the
previous Hayfin Ruby Luxembourg transaction. Specifically, it is
expected that the issuer will use these net proceeds to repay and
cancel all outstanding liabilities and claims owed under the
previous transaction.
RATINGS LIST
HAYFIN RUBY II LUXEMBOURG S.C.A.
EUR396.50 Million Multicurrency Floating-Rate Notes
Class Prelim. Prelim.
rating amount
(mil. EUR)
VFN[1] AAA (sf) 50.00
A-1 AAA (sf) 81.90
A-2[1] AAA (sf) 81.90
B-1 AA (sf) 26.00
B-2[1] AA (sf) 26.00
C-1 A (sf) 11.50
C-2[1] A (sf) 11.50
D-1 BBB (sf) 10.24
D-2[1] BBB (sf) 10.24
E-1 BB (sf) 13.00
E-2[1] BB (sf) 12.87
F-1 NR 31.00
F-2[1] NR 31.60
VFN - Variable funding note.
[1]GBP-denominated notes (converted into euro at the initial FX
rate).
NR-Not rated.
LION/GEM: S&P Assigns 'B-' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
corporate credit rating to Lion/Gem Luxembourg 3 S.a.r.l.
"We refer to Lion/Gem Luxembourg as Findus or the group.
At the same time, we assigned our 'B-' issue rating to the œ410
million-equivalent senior secured notes issued by Lion/Gem
Luxembourg's subsidiary Findus Bondco S.A. The recovery rating on
these notes is '4', indicating our expectation of average (30%-
50%) recovery in the event of a payment default," S&P said.
The rating assignment follows Findus' announcement that it has
successfully issued its GBP410 million-equivalent senior secured
notes and repaid its existing term loan. Aside from the new
senior secured notes, the group's capital structure also includes
a GBP60 million super senior revolving credit facility (RCF) and
about GBP457.4 million of existing preferred equity certificates
(PECs). These PECs remain subordinated within the structure.
"The ratings on Findus are constrained by our assessment of the
group's financial risk profile as "highly leveraged" and its
business risk profile as "weak," S&P said.
"We project that Findus' Standard & Poor's-adjusted debt-to-
EBITDA ratio will remain at about 11.2x, or about 5.5x excluding
the PECs and a shareholder loan, now that the notes have been
issued. Findus' EBITDA cash interest coverage is about 2.5x. An
EBITDA-to-cash interest ratio in excess of 2x and "adequate"
liquidity are commensurate with a 'B-' rating.
The issue rating on the GBP410 million-equivalent senior secured
notes issued by Findus Bondco is 'B-'. The recovery rating on
these notes is '4', reflecting our opinion of average (30%-50%)
recovery prospects in the event of a default," S&P said.
"Our recovery rating on the notes is supported by our valuation
of the group as a going concern and the relatively comprehensive
security package provided to senior secured lenders, which
includes pledges over all of the group's assets in the U.K.
However, in our view, the recovery prospects on the notes are
limited by the GBP60 million RCF, which is provided on a super
priority basis," S&P said.
"In order to calculate recoveries, we simulate a hypothetical
default scenario. We believe that a default would most likely be
triggered by margin erosion due to higher raw material costs that
the group would be unable to pass on to customers. In part, this
would be due to increased competition from private labels. In
addition, we believe that further product recalls leading to
reputational damage could compound margin erosion. We anticipate
a default in 2016, by which point we envisage that EBITDA would
have fallen to GBP62 million.
We value Findus as a going concern, given its significant market
positions, particularly in the Nordic region and the U.K. and the
strength of the Findus brand in the Nordic countries. At our
hypothetical point of default, we value the company at about
GBP310 million, equivalent to a 5x valuation multiple," S&P said.
"From this, we deduct priority liabilities of GBP52 million,
primarily comprising the costs associated with enforcement and
50% of the group's pension deficit. We assume that the pension
deficit would reduce the value to noteholders even if legal
ranking of some of the pension claims would rank behind secured
note holders. After subtracting GBP62 million for the group's
super senior RCF (assuming that it is 100% drawn, as well as six
months' prepetition interest) we see about GBP195 million
remaining for the senior secured noteholders. We envisage about
GBP430 million of senior secured debt outstanding at the point of
default (including six months' prepetition interest), equivalent
to 30%-50% recovery prospects," S&P said.
"The stable outlook reflects our view that the successful
issuance of the senior secured notes improves the maturity
profile of the group and allows it to use funds for investments
within the business.
It also reflects our view that the new notes will aid the group
in implementing its various initiatives. In our view, these
initiatives will help the group to maintain its steady revenues
and margins over the next 12-18 months. An EBITDA-to-cash
interest ratio in excess of 2x and "adequate" liquidity are
commensurate with a 'B-' rating.
In our opinion, a positive rating action over the next 12 months
is unlikely. However, we could take a positive rating action
over the medium term if we see an improvement in the group's
business performance, translating into improved EBITDA margins.
Increases in raw material costs that the group cannot recover
from price increases within a short time frame, and further
deterioration in the performance of the group's business could
lead to a negative rating action," S&P said.
"We could also lower the ratings if the group's liquidity becomes
materially weaker due to reduced profitability and/or
restructuring costs, and if cash interest coverage falls to less
than 1.5x," S&P said.
===========
N O R W A Y
===========
NORTHLAND RESOURCES: Completes Registration of Warrants & Bonds
---------------------------------------------------------------
Northland Resources S.A. on Aug. 7 disclosed that it has
completed registration of Warrants and the Second Lien
Convertible Bonds in the Norwegian Central Securities Registry.
As previously disclosed, Northland has issued a new first lien
USD 335 million bond loan. The subscribers of the First Lien
Bond have received warrants, which will be exercisable for an
aggregate of 83,592,299 new shares of NRSA (following
implementation of a reverse share split in respect of NRSA's
share capital, which is expected to take place by the end of
August 2013 but subject to anti-dilution rights). The warrants
have now been registered in the Norwegian Central Securities
Depository (Verdipapirsentralen). The issuance of new shares upon
exercise of warrants will take place at the end of each month in
which warrants are exercised. The warrants are expected to be
listed on the Oslo Stock Exchange as soon as a listing prospectus
has been approved by the CSSF in Luxembourg.
In order to receive shares upon exercise of warrants at the end
of August, an exercise notice must be received by the Company by
August 26, 2013. The exercise notice and the full terms and
conditions for the warrants have been published on Northland's
website at:
http://northland.eu/en-us/investor-relations/current-transaction
Northland also disclosed that registration of the Second Lien
Convertible Bonds has now been completed in the Norwegian Central
Securities Depository. The Second Lien Convertible Bonds will
continue to trade on the Oslo Stock Exchange under the same ISIN
but with Northland Resources S.A. being the issuer as set out
below:
-- ISIN: NO 001 063613.7 - 4% Northland Resources S.A. Second
Lien Bond Issue 2013/2020 (NOK 466,593,297).
-- ISIN: NO 001 063619.4 - 4% Northland Resources S.A. Second
Lien Bond Issue 2013/2020 (USD 294,156,660).
Please note that the bonds previously represented by ISIN: NO 001
066799.1 - 12.25% Senior Secured Loan (USD 20,000,000) have been
consolidated into the bonds represented by ISIN: NO 001 063619.4.
Northland is a producer of iron ore concentrate, with a portfolio
of production, development and exploration mines and projects in
northern Sweden and Finland. The first construction phase of the
Kaunisvaara project is complete and production ramp-up started in
November 2012. The Company expects to produce high-grade, high-
quality magnetite iron concentrate in Kaunisvaara, Sweden, where
the Company expects to exploit two magnetite iron ore deposits,
Tapuli and Sahavaara. Northland has entered into off-take
contracts with three partners for the entire production from the
Kaunisvaara project over the next seven to ten years. The
Company is also preparing a Definitive Feasibility Study ("DFS")
for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in
Kolari, northern Finland and for the Pellivuoma deposit, which is
located 15 km from the Kaunisvaara processing plant.
About Northland
Headquartered in Luxembourg, Northland Resources S.A. is a
producer of iron ore concentrate, with a portfolio of production,
development and exploration mines and projects in northern Sweden
and Finland. The first construction phase of the Kaunisvaara
project is complete and production ramp-up started in November
2012. The Company expects to produce high-grade, high-quality
magnetite iron concentrate in Kaunisvaara, Sweden, where the
Company expects to exploit two magnetite iron ore deposits,
Tapuli and Sahavaara. Northland has entered into off-take
contracts with three partners for the entire production from the
Kaunisvaara project over the next seven to ten years. The
Company is also preparing a Definitive Feasibility Study for its
Hannukainen Iron Oxide Copper Gold project in Kolari, northern
Finland and for the Pellivuoma deposit, which is located 15 km
from the Kaunisvaara processing plant.
As reported by the Troubled Company Reporter on July 15, 2013,
Peter Pernlof, Acting CEO and COO of Northland Resources S.A.,
disclosed that the Lulea District Court approved on July 12 the
reorganization plan for the Company's Swedish subsidiaries.
As previously disclosed, the Lulea District Court held
composition proceedings on July 12 in connection with the
reorganization of companies Northland Resources AB (publ),
Northland Sweden AB and Northland Logistics AB. During the
proceedings the companies' creditors approved the terms of the
proposed composition. The District Court held in accordance with
this and approved the reorganization plan and composition.
Norwegian subsidiary Northland Logistics AS is not going through
formal reorganization, but has previously agreed with all of its
creditors on a payment plan identical to that of the other
subsidiaries.
* * *
As reported by the Troubled Company Reporter-Europe on April 1,
2013, Moody's Investors Service affirmed the Caa3 corporate
family rating and bond rating of Northland Resources AB.
Concurrently, Moody's has applied the 'limited default' ('/LD')
indicator to the company's Ca-PD probability of default rating
(PDR), to reflect the recently missed interest payment on its
outstanding notes, which the rating agency considers a default
according to its definition of default. As a result, Moody's PDR
for Northland has been affirmed at Ca-PD/LD. In addition, the
outlook on all ratings remains negative.
RESERVOIR EXPLORATION: ION Incurs US$1.6-Mil. Losses on GeoRXT JV
-----------------------------------------------------------------
ION Geophysical Corporation on Aug. 7 reported second quarter
2013 revenues of US$120.9 million, a 15% increase from revenues
of US$105.2 million in second quarter 2012. During the quarter,
the Company increased its legal accrual related to the
WesternGeco legal matter, resulting in a negative non-cash impact
to its reported results. Including the legal accrual, ION
reported a net loss of US$(71.1) million, or US$(0.45) per
diluted share, in the second quarter. Excluding the legal
accrual, net income was US$0.4 million, or US$0.00 per diluted
share, compared to net income of US$12.0 million, or US$0.08 per
diluted share, in second quarter 2012.
The Company disclosed that its second quarter operating results
were impacted by approximately $6 million of cost overruns on a
GeoVentures(R) project, a loss from the INOVA Geophysical joint
venture of US$(4.7) million, and a loss from the GeoRXT joint
venture of US$(1.6) million, collectively resulting in US$(0.07)
impact to the Company's diluted earnings per share. Adjusted
EBITDA was US$31.8 million compared to US$33.9 million in the
second quarter 2012.
Brian Hanson, the Company's President and Chief Executive
Officer, commented, "Overall, the first half of the year was
challenging. While our first half revenues were up 16%, our
operating margins were down due to cost overruns as we completed
acquisition on our first 3D marine program. The pipeline of new
venture programs looks solid but is heavily weighted toward the
back half of the year. Once again, we are acquiring data in the
Arctic, and our land ResSCAN(TM) programs are gearing up this
coming quarter. As a result, we have only spent about 25% of our
planned 2013 Cap Ex budget in the first half of the year. Our
data processing business again generated record revenues, driven
by strong demand in Europe, the Middle East and the Gulf of
Mexico, and continued demand for our broadband processing
solution, WiBand(TM). Our systems and software businesses are
being pressured by consolidation in the towed steamer market and
a reduction in seabed contractors, with RXT's recent filing for
bankruptcy. We expect to see modest improvements in these areas
of our business over the back half of the year."
The Company's equity investments include its 49% interest in
INOVA Geophysical and its 30% interest in GeoRXT. The Company
accounts for its 49% interest in INOVA on a one fiscal quarter-
lag basis. As a result, the Company's share of INOVA's first
quarter 2013 financial results is included in the Company's
second quarter results.
During the second quarter, the Company recognized losses on its
INOVA equity investment of US$(4.7) million, compared to earnings
of US$3.8 million for the prior year period, resulting primarily
from a 61% decline in revenues. This decline was attributable to
a reduction in vibrator truck sales and reduced revenues from
rental equipment. Additionally, during the second quarter 2013,
the Company recorded losses on its GeoRXT equity investment of
US$(1.6) million.
The disclosure was made in ION's earnings release for the second
of quarter 2013, a copy of which is available for free at:
http://is.gd/B5aHaO
About ION
ION Geophysical Corporation -- http://www.iongeo.com-- is a
provider of geophysical technology, services, and solutions for
the global oil & gas industry. ION's offerings are designed to
allow E&P companies to obtain higher resolution images of the
subsurface to reduce the risk of exploration and reservoir
development, and to enable seismic contractors to acquire
geophysical data safely and efficiently.
About RXT
Norway-based Reservoir Exploration Technology ASA is the only
marine geophysical company specializing in multi component
seismic seafloor acquisition.
As reported by the Troubled Company Reporter-Europe on June 11,
2013, Reservoir Exploration Technology ASA on June 10 disclosed
that if a long-term solution has not been secured when the
current project west of Ireland is finalized, the board of RXT
will file for bankruptcy.
===========
R U S S I A
===========
AHML INSURANCE: Fitch Assigns 'BB' IFS Rating; Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC AHML Insurance
(AHMLI) an Insurer Financial Strength (IFS) rating of 'BB' and a
National IFS rating of 'AA-(rus)'. The Outlook is Stable.
Key Rating Drivers
The ratings reflect the 99.98% ownership of AHMLI by the state-
owned Agency for Housing Mortgage Lending (AHML) and the fact
that the insurer has received significant excess capital during
the start-up phase, including two equal tranches of RUB1.5
billion in 2009 and 2013. AHMLI continues to receive substantial
non-monetary support in the form of methodological and
statistical advice from AHML.
The ratings also take into account that AHMLI does not have any
guarantee or other formal support agreement either from the
government or from the parent, whereas most of AHML's debt
benefits from government guarantees. AHML also has sufficient
access to the Russian Central Bank's liquidity through repo
agreements with several large banks, including state-owned banks.
AHML envisages that the insurer should manage further capital
needs largely on its own and plans to divest at least a 49% stake
in AHMLI by 2018. Fitch views this as a negative rating factor
for AHMLI.
Taking into account the available level of support and moderate
parental commitment from AHML, Fitch has given a two-notch uplift
to the stand-alone assessment of AHMLI's rating. This uplift will
most likely be reduced or removed if AHML reduces its
participation to a minority.
The assessment of AHMLI's stand-alone position takes into account
the specific risks associated with the insurer's business model.
AHMLI operates as a specialized mortgage (re)insurer in both the
primary and secondary segments of the residential mortgage
lending sector in Russia. Key industry risks faced by mortgage
insurers include the deteriorating macroeconomic environment,
specifically rising unemployment, along with declining lending
and underwriting standards, and elevated house prices and
mortgage debt levels. The insurer's exposure to a cyclical
deterioration in these risk factors is heightened through the
monoline and long-term nature of the business.
AHMLI started operations as a proportional reinsurer.
Relationships established with 30 local cedants have helped AHMLI
to reduce administrative expenses in the start-up phase and avoid
risks related to anti-monopoly regulation. At present AHMLI
offers three products: primary flow, bulk and pool insurance. In
all cases the insurer protects either lenders or investors from
principal and interest losses in the event that a borrower
defaults and the property held as security is sold for less than
the amount owed.
In 2010-2012 AHMLI predominantly wrote primary flow as a
reinsurer with an average participation of 75%. However, from
2013 AHMLI plans to re-enter the segment of mortgage insurance as
a primary insurer to write bulk and pool insurance, which local
primary multiline insurers are reluctant to assume. According to
the strategy set by the parent, AHMLI plans to provide insurance
for up to 21% of securitized pools issued in Russia by 2015 and
see risk-in-force increase to RUB37 billion in 2015 (2012: RUB3
billion). Fitch views this growth strategy as rather aggressive.
The agency will pay particular attention to AHMLI's plans for
maintaining its capital strength. AHML has doubled AHMLI's
capital in 2013 to RUB3 billion to support the insurer's short to
medium term plans for growing business volumes. The shareholder
envisages that the insurer should be able to manage further
capital needs through outwards reinsurance and/or capital from
third party investors. Fitch believes that both the purchase of
appropriate outwards reinsurance and the attraction of third
party capital might be a challenging target for AHMLI.
Fitch considers the level of AHMLI's capitalization at end-2012
to be significantly in excess of that required relative to the
risk-in-force. However, the insurer's growth plans suggest that
the current overcapitalization is likely to weaken in the medium
term and, combined with low profitability projected by the
insurer, the company may well increase its reliance on external
sources of capital. The agency therefore considers that in the
medium-term lower levels of capitalization could constrain the
insurer's ratings.
AHMLI invests only in fixed-income instruments. Although these
instruments are usually less volatile than investing in, for
example, equities, Fitch views the insurer's investment portfolio
as of moderate quality due to the high proportion of sub-
investment grade placements and highly concentrated exposure to
the banking sector.
RATING SENSITIVITIES
Key rating triggers for a downgrade include:
-- A reduction in AHML's participation to a minority interest.
-- Aggressive growth, measured both in volume and product mix
terms, as rapid growth can often be accompanied by declines
in underwriting quality or pricing.
-- Deterioration in capital to a level no longer consistent
with the risks for the rating level. Given AHMLI's current
overcapitalisation, Fitch envisages such an action would
occur only if the company were unable to access new capital
and would most probably only occur in the medium term.
An upgrade is unlikely in the near to medium term based on the
company's own credit fundamentals. However, an upgrade could be
possible if AHMLI were to receive a formal support agreement from
AHML.
RENAISSANCE CREDIT: Fitch Rates RUB3-Bil. Unsec. Bond Issue 'B'
---------------------------------------------------------------
Fitch Ratings has assigned CB Renaissance Credit's (RenCredit;
B/Stable) RUB3 billion senior unsecured fixed-rate bond issue
(BO-5 series), with a put option after 1.5 years and final
maturity on July 30, 2018, a Long-term rating of 'B' and National
Long-term Rating of 'BBB(rus)'. The notes have a Recovery Rating
of 'RR4'.
Key Rating Drivers
The issue ratings are aligned with RenCredit's Long-term local
currency Issuer Default Rating (IDR) of 'B' and National Long-
term Rating of 'BBB(rus)'. These in turn reflect the bank's
markedly weaker and more volatile performance relative to major
retail banks in the sector, and the significant increase in loss
rates in H113, which led to a RUB1.26 billion loss in regulatory
accounts. However, regulatory capital is reasonable (13.3% at
end-H113) and liquidity is sound, with liquid assets exceeding
total wholesale funding due in 2013. RenCredit's credit profile
has also benefited from its acquisition in 2012 by the Onexim
Group, which reduced contingent risks relating to other assets of
the broader Renaissance group, and was followed by a RUB3.4
billion equity injection in December 2012 as well as provision of
US$150 millio subordinated debt in Q412-Q113.
Rating Sensitivities
Downward pressure on RenCredit's Long-term IDRs, and consequently
the issue's ratings, could arise if there was a lack of control
over credit losses resulting in continued loss-making
performance. Significant deposit outflows, resulting in a sharp
tightening of liquidity, could also result in negative rating
action. Conversely, an improved control over credit losses
leading to sustained profitable performance, and more balanced
growth could result in rating upside over the medium term.
The debt ratings could also be downgraded in case of a further
marked increase in the proportion of retail deposits in the
bank's liabilities (63% of end-H113 liabilities), resulting in
greater subordination of bondholders. In accordance with Russian
legislation, the claims of retail depositors rank above those of
other senior unsecured creditors.
ROSSIYA INSURANCE: Fitch Downgrades IFS Rating to 'CCC'
-------------------------------------------------------
Fitch Ratings has downgraded Russia-based Rossiya Insurance
Company's (Rossiya) Insurer Financial Strength (IFS) rating to
'CCC' from 'B-' and National IFS rating to 'B(rus)' from 'BB-
(rus)'. The Outlook is Negative.
Fitch sees Rossiya's current business model as unviable given the
significant deterioration of the operating environment in the
local compulsory motor third party liability (MTPL) insurance
segment. For Rossiya, the impact is exacerbated by the company's
lack of success from its efforts to achieve a healthier portfolio
structure with less weighting to MTPL business. In Fitch's
opinion, there might be a heightened risk of regulatory
preventive actions as a result. The downgrade follows the
publication of Rossiya's half-year results and the MTPL segment's
statistics by the Russian Union of Motor Insurers (RUMI) for
H113.
Key Rating Drivers
According to the statistics disseminated by RUMI through local
news wires, the loss experience of Russian MTPL insurers
significantly deteriorated in H113 due to changes in the legal
framework for claims handling procedures. Originally these
changes aimed to strengthen the protection of policyholders'
rights. In effect they have resulted in a notable increase of
claims processed through the court system and a wide application
of penalties by the courts.
As a result, the average MTPL claim across the sector grew by
16.7% in H113 compared with H112, whereas the average policy
premium grew by only 4.5% in the same period. The segment's loss
ratio has not been made available for the period in question. At
least in the short term, Fitch does not expect to see an
improvement in the loss experience of Russian MTPL insurers.
Whereas many players have chosen to limit their growth in the
segment, Rossiya increased its exposure considerably with the
weight of MTPL in its portfolio growing to 54% in H113 from 36%
in H112 and 35% in 2012. This increased weighting is only
partially due to a decline in other business lines (Rossiya's
overall gross written premiums declined 23% in H113). The agency
also believes that it will now be even more challenging than in
the past for the company to achieve a more diversified business
mix.
Rossiya has also reported a deterioration of its combined ratio
to 125% in H113 from 105% in H112, which was driven by all
components of the ratio, including loss, commission and expense
levels. The relatively inflexible level of administrative
expenses has put more pronounced pressure on the combined ratio
and is likely to heighten scrutiny of the underwriting result
should the portfolio continue to shrink. H113's underwriting loss
and moderate investment income led to a pre-tax operating result
of negative RUB305 million compared with a positive RUB196
million in H112.
Rossiya's shareholder has extended significant support to the
company in the past. Fitch believes that the insurer's limited
success in strengthening its profile since its acquisition in
2009 reduces the value of the company to its owner. In the
current circumstances, the agency does not factor any group
support into the ratings, as the group does not have a
transparent structure, a shared brand name or franchise, or a
known level of financial strength.
Rating Sensitivities
A downgrade is possible if Rossiya weakens the service of its
obligations or if the local insurance regulator introduces rigid
levels of intervention to the insurer's activity.
The Outlook could be revised to Stable if the company achieves
any notable improvement in its business mix away from MTPL, or if
it manages to withstand to some extent the deterioration of the
loss experience in the MTPL segment, with less worsening of its
MTPL loss ratio than experienced by the sector as a whole.
* CHUVASH REPUBLIC: Fitch Affirms ST Foreign Curr. Rating at 'B'
----------------------------------------------------------------
Fitch Ratings has affirmed the Chuvash Republic's Long-term
foreign and local currency ratings at 'BB+', with Stable
Outlooks, and its Short-term foreign currency rating at 'B'. The
agency has also affirmed the region's National Long-term rating
at 'AA(rus)' with Stable Outlook.
Key Rating Drivers
The affirmation reflects moderate direct risk and agency's
expectations for restoration of sound operating performance.
Fitch expects Chuvashia to restore budgetary performance with
margins at about 7%-8% in 2013-2015. Operating balance
deteriorated to 4.9% of operating revenue in 2012 from 10.2% in
2011. This was due to the growth in operating expenditure caused
by the necessity of increasing salaries during the implementation
of presidential decrees. The republic recorded a deficit before
debt variation of 5.2% of total revenue in 2012, which was
largely financed by new debt.
Nevertheless, direct risk remained moderate at 31% of current
revenue in 2012, and Fitch expects it will be below 40% of
current revenue in the medium term. As of July 1, 2013, the
republic's direct risk decreased to RUB6.5 billion from RUB8.8
billion at the start of the year while the maturity profile
shifted towards long-term domestic bonds. The republic redeemed
RUB2.9 billion of short-term bank loans, and on June 7, 2013
placed a new RUB1.5 billion domestic bond with final maturity in
2018.
Fitch estimates the region's refinancing needs to be low,
limiting Chuvashia's exposure to refinancing risk to RUB0.85
billion of budget loans in 2013 and repayment of RUB1.5 billion
domestic bonds in 2014. The republic has committed bank credit
lines totaling RUB3.5 billion that mitigate its refinancing
risks. Fitch expects the structure of the region's direct risk
will remain stable with the proportion of short-term debt at
about 30% of the total in 2014-2015.
The region's contingent liabilities decreased to RUB2.1 billion
in 2012 from RUB3.9 billion in 2011 as both guarantees and debt
of PSEs went down. Chuvashia's PSEs are self-financing and
reported an aggregate net profit of RUB193 million. Guarantees
issued in support of its public sector and for promoting economic
development totaled RUB1.4 billion at end-2012.
The republic's socio-economic profile is historically weaker than
that of the average Russian region. Its per capita gross regional
product was about 31% lower than the national median in 2011.
However, Chuvashia has a diversified economy that grew by 5.2% in
2012, above the national average. The administration expects 3.9%
yoy economic expansion in 2013 and average 5% growth in 2014-
2016.
Rating Sensitivities
Restoration of a sound budgetary performance would be positive.
The region's ratings could be positively affected by restoration
of a historically high operating margin to above 15%, along with
the containment of direct risk below 40% of current revenue.
Worsened debt ratios would be negative. Sharp growth of direct
risk to above 50% of current revenue and/ or further
deterioration of operating performance resulting in weak debt
coverage would lead to a revision of the Outlook to Negative or a
downgrade.
=========
S P A I N
=========
PESCANOVA SA: Shareholder Meeting Scheduled for September 12
------------------------------------------------------------
Undercurrent News reports that Pescanova's board has convened a
shareholder meeting for Sept. 12, during which shareholders will
decide on a new board for the company.
The meeting will take place at 12:30 p.m., at the company's
headquarters in Chapela-Redondela, Pontevedra, near Vigo in
northwestern Spain, Undercurrent News discloses.
The decision was made at a board meeting on Thursday, during
which Pescanova's directors also accepted the resignation of
Manuel Fernandez de Sousa-Faro as chairman of Pescanova, and the
resignation of Dona Ana Belen Barreras Ruano as board member,
Undercurrent News relates.
According to Undercurrent News, some Spanish commentators said
that some of Pescanova's creditor banks are keen for his
successor to be independent of the regional and national
government. The same banks are reportedly not entirely satisfied
by the board's choice to appoint PriceWaterhouseCoopers to design
a viability roadmap for Pescanova, by Sept. 2, Undercurrent News
notes. The banks had demanded that KPMG, which has done
extensive forensic work into the company's finances, would be
best placed for such a task, if only to save time, Undercurrent
News discloses.
KPMG's forensic audit report has revealed that Pescanova's debt
was of EUR3.281 billion as of December 2012, twice the amount
reported in its third quarter report, and that the company had a
negative net asset value of EUR927 million, Undercurrent News
relates.
According to Undercurrent News, it has found that Pescanova
racked up losses of nearly EUR1 billion since 2010, including
more than half a billion last year, despite reporting profits
during those years.
Pescanova is a Galicia-based fishing company. The company
catches, processes, and packages fish on factory ships. It is
one of the world's largest fishing groups.
Pescanova filed for insolvency on April 15, 2013, on at least
EUR1.5 billion (US$2 billion) of debt run up to fuel expansion
before economic crisis hit its earnings. The Pontevedra
mercantile court in northwestern Galicia accepted Pescanova's
insolvency petition on April 25. The court ordered the board of
directors to step down and proposed Deloitte as the firm's
administrator.
=============
U K R A I N E
=============
LUHANSK PIPE: Declared Bankrupt; Liquidation Commences
------------------------------------------------------
Interfax-Ukraine reports that the economic court in Luhansk
region has declared Luhansk Pipe Plant bankrupt and started
liquidation procedures.
According to the materials of the case on bankruptcy of Luhansk
Pipe Plant being heard by the economic court in Luhansk region,
copies of which have been sent to Interfax-Ukraine, the ruling on
declaring the company bankrupt was issued on July 29, 2013.
According to the document, the term of the liquidation procedure
is one year, until July 29, 2014, Interfax-Ukraine discloses.
Arbitration manager Oleksandr Bondarchuk has been appointed
liquidator, Interfax-Ukraine relates.
The head of the Luhansk Pipe Plant is to hand over accounting
documents, stamps, material and other assets of the enterprise
within 15 days, Interfax-Ukraine notes.
The court also lifted the arrest on property of the plant,
Interfax-Ukraine states.
The claims of creditors can be submitted within two months of the
day of the official publication of the announcement,
Interfax-Ukraine says.
The next hearing of the court in the case is scheduled for
November 25, 2013, Interfax-Ukraine discloses.
Initially the claim against Luhansk Pipe Plant on declaring it
bankrupt was sent by Apriori Law Consulting Company LLC,
demanding the return of UAH1 million, on the basis of which the
court on January 17, 2013 opened a case on bankruptcy and
introduced a property management procedure for the debtor for the
period until August 15, 2013, Interfax-Ukraine recounts.
Arbitration manager Bondarchuk was appointed property manager,
Interfax-Ukraine relates.
Later, the creditors of Luhansk Pipe Plant, particularly,
Zaporizhstal, EvrazTrans Ukraine, the department of the Pension
Fund, the tax inspectorate, Naftogaz Ukrainy and others, appealed
to the court, Interfax-Ukraine discloses. At a hearing on May
20, 2013, the claims of the creditors were discussed and some of
them were put on the list of creditors, Interfax-Ukraine relates.
The claim of Zaporizhstal was put aside pending confirmation of
the debt, Interfax-Ukraine notes.
At a hearing on June 3, 2013, the claims of the works were
declared valid and the court obliged Bondarchuk to include
Zaporizhstal on the list of creditors, Interfax-Ukraine recounts.
In total the court recognized claims from creditors worth over
UAH400 million, Interfax-Ukraine discloses.
Luhansk Pipe Plant has not been producing goods since October
2012, Interfax-Ukraine notes.
===========================
U N I T E D K I N G D O M
===========================
FINDUS PLEDGECO: Fitch Assigns 'B-' Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has assigned Findus PledgeCo S.a.r.l (Findus) a
final long-term foreign currency Issuer Default Rating (IDR) of
'B-' with a Stable Outlook. Fitch has also assigned a final
instrument rating of 'B+'/'RR2' to Findus BondCo S.A.'s 9.5%
sterling and 9.125% euro senior secured notes maturing July 2018.
The notes refinance the existing senior term debt facilities.
Fitch notes the tighter interest cover than forecasted at the
time the expected ratings were assigned on July 9, 2013 due to
the higher than expected coupon for the senior secured notes.
However Fitch's forecast credit metrics remain within the
parameters defined for the 'B-' IDR. The notes have a maturity of
five years and are non-call for two years.
The final ratings follow a review of the final documentation
which materially conform to information received at the time the
agency assigned the expected ratings, including the EUR60 million
super senior revolving credit facility (RCF) that can be
increased to whichever is greatest of EUR100 million or 110% of
consolidated EBITDA.
Key Rating Drivers
Long-term Refinancing
Funds from operations (FFO) adjusted leverage at year-end 2013
(pro forma for the refinancing) of more than 7x remains high
while FFO/fixed charge cover is only at 1.5x. Fitch expects
leverage to improve gradually towards 6x respectively with FFO
fixed charge cover improving slightly towards 1.7x. Fitch has not
treated any of the subordinated debt including Junior MidCo PEC,
Senior Midco notes, Tracker PEC and On-loan PEC instruments as
debt due to their equity alike characteristics, including either
contractual or structural subordination, the absence of security
and/or material independent enforcement rights, longer dated
maturities, PIK for life.
Resilient Food Consumption but Limited Growth
Consumption of fast moving consumer goods is relatively resilient
throughout the economic cycle albeit growth in mature, developed
markets is limited. Findus' product innovation and effective
marketing spend are key to ensure its product offering remains
relevant to consumers in the context of changing economic
conditions, consumer preferences, health concerns and
fluctuations in food prices. The horse-meat issue that emerged in
early 2013 and directly affected 0.9% of Findus product sales
appears to have had minimal impact on the Findus brand and the
group's overall financial performance so far.
Portfolio Diversity
Findus remains the market leader in its key markets of Norway,
Sweden, Finland and France with high market shares in branded
frozen food although we expect increasing private label
penetration and competition from chilled food to continue putting
pressure on Findus group's profit margins. In Southern Europe,
revenue support spend will drive pricing pass through albeit with
limited EBITDA upside until 2014. Findus' UK business remains low
margin. While opportunities exist for management to extract
further cost savings (mainly in the Nordics), intense competition
in frozen and sector overcapacity issues in chilled will hamper
any meaningful recovery in UK profitability. Cost savings, albeit
limited, are expected to remain the key driver of profit growth.
Volatility in Commodity Prices
Sudden commodity price inflation in conjunction with greater
sourcing volatility in food commodity markets will continue to
challenge Findus. New management will need to demonstrate how to
effectively compete against larger and more diversified branded
players during periods of rising input costs through e.g. price
increases as part of product reformulations. Findus needs to
demonstrate its commitment to achieving a lean cost structure
leading to greater profit stability and margin expansion bringing
it more in line with close peers.
Appropriate Liquidity
Findus' liquidity is deemed adequate with an estimated GBP32
million of cash and marketable securities on balance sheet post
refinancing and access to an initially undrawn GBP60 million
(increased from GBP50 million) super senior RCF. Moreover, the
group's expected generation of annual cash flow from operations
(CFO) between GBP20 million and GBP35 million over the forecasted
period should provide sufficient funding for the group's
operating needs including working capital requirements and capex.
Expected Recovery for Creditors upon Default
The senior secured notes' 'B+'/'RR2' rating reflects Fitch's
expectation of superior recoveries in the range of 71%-90% in
case of default. The instrument's rating is reflective of Findus'
high FFO adjusted leverage above 7x and takes into account a
GBP60 million super senior RCF inter alia effectively ranking
ahead of the bond. Driving these recovery expectations is an
estimated post restructuring EBITDA at approximately GBP83
million reflecting a hypothetical adverse scenario of depressed
sales and compressed margins as a function of increased
competition and elevated commodity prices and a going concern
multiple of 5x enterprise value/EBITDA.
RATING SENSITIVITIES:
Future developments that could lead to positive rating actions
include:
-- Improvement in operating profitability and organic business
growth evidenced by EBITDA margin improvement up to 9% and
free cash flow margin of 3% or higher.
-- Further de-leveraging with FFO adjusted leverage to or below
5.5x on a sustained basis.
-- FFO fixed charge cover at 2x or above on a sustained basis.
Future developments that could lead to negative rating action
include:
-- A contraction in organic revenue combined with a continued
and permanent reduction in operating profitability leading
to an EBITDA margin below 7%
-- Consecutive periods of negative cash flow leading to erosion
in the liquidity cushion
-- A sustained deterioration in FFO adjusted leverage to or
above 7x
-- FFO fixed charge cover sustainably at 1.5x or below
-- Inability to procure long-term refinancing ahead of the
existing debt maturities
GET JUICE: In Liquidation; Put Up for Sale
------------------------------------------
Dominic Jeff at The Scotsman reports that Get Juiced has
collapsed into liquidation after the owner, Frank Pawley, ran out
of cash to fund its bid for growth.
According to the Scotsman, the company ceased trading last month
and all its employees were laid off, but liquidator Donald
McNaught -- donald.mcnaught@jcca.co.uk -- of accountancy firm
Johnston Carmichael, hopes the company can be revived through a
sale.
"Get Juiced has an established brand name which, I believe, will
attract a lot of interest from potential buyers. My immediate
aim is to preserve the value of the brand and goodwill by
achieving an early sale of the business and its assets," the
Scotsman quotes Mr. McNaught as saying.
Get Juiced is a Stirling-based soft drinks company.
LADBROKES PLC: Weak H113 Results Highlight High Business Risks
--------------------------------------------------------------
Fitch Ratings says that the weak H113 trading results announced
by Ladbrokes plc (Ladbrokes, 'BB+'/Stable Outlook), which also
include exceptional charges in relation to its online business,
reflect a combination of events factored into its rating as well
as the cost of a turnaround of the online business that should
yield benefits over time. However, rating headroom will reduce in
the course of 2013.
UK betting is structurally subject to recurring adverse racing
results and race cancellations, as well as a fast pace of
innovation and taxation that exposes trading to a very
challenging environment. These elements concur to capping ratings
of industry participants to a low investment grade threshold, and
are factored into Ladbrokes' Issuer Default Rating (IDR) of
'BB+'.
Fitch believes that Ladbrokes' weak H113 results should be read
in this context, where the company suffered a GBP21 million drop
in operating profit from the absorption of the new gaming machine
tax, additional costs from investment in its store network
(higher broadcasting content costs and new stores) and the end of
the growth momentum of its machines.
All this was exacerbated by the online gaming unit's challenges.
Ladbrokes is still completing a lengthy relaunch of its online
unit but its under-performing online gaming offer and customer
relationship management system should soon start benefitting from
the Playtech joint venture announced this March. Many other
initiatives taken by management are also on track and should
enable Ladbrokes to catch up much of the ground lost in the past
four years to the much stronger performing William Hill Online
(who in the same H113 period reported a healthy profit margin of
34% against the 11.9% of Ladbrokes's digital unit) and
Party.bwin.
Offsetting these challenges Fitch expects immediate benefits on
2013's results from new store openings and a more effective
liability management system that is delivering higher profit
margins to the company's betting operations. The point of
consumption gaming tax that the UK Government is likely to pursue
in 2014 for online gaming should, following some potential
temporary disruption, favor industry players like Ladbrokes that
are more established in the UK.
"We have rebased our projections to include weaker profits from
UK retail as well as slower growth from gaming machines and the
2013 exceptional charges. We project that 2013 free cash flow
(FCF) could fall into mildly negative territory (against the
previous expectation of approximately GBP50 million), but should
improve from 2014. Despite a 2013 peak of 3.1x - 3.2x, funds from
operations adjusted net leverage (FYE12: 2.9x) should, from 2014,
drop below the critical level of 3.2x, which Fitch considers the
highest leverage compatible with the company's current 'BB+'
IDR," Fitch says.
Should however Ladbrokes' trading performance not show signs of
recovery by the end of 2013, Fitch is likely to consider a
negative rating action.
LIBERTY GLOBAL: Moody's Confirms 'Ba3' CFR; Outlook Stable
----------------------------------------------------------
Moody's Investors Service confirmed the Ba3 Corporate Family
Rating and the Ba3-PD Probability of Default ratings of Liberty
Global plc. The rating outlook is stable. The rating action
concludes a review first initiated in February 2013 and continued
in June 2013.
Ratings Rationale:
The ratings confirmation and a stable outlook are based on
Moody's expectation that Liberty Global will continue to deliver
a solid overall operating performance with visible revenue and
EBITDA growth and that it can successfully integrate Virgin Media
Inc. The acquisition of Virgin Media, announced in February for
an enterprise value of US$23 billion, is Liberty Global's largest
acquisition to date. Moody's also assumes that Liberty Global
will manage its ongoing M&A activity and stock repurchases so
that some improvement in leverage ratios can be achieved. Moody's
ratio for the company's Debt/EBITDA leverage was around 5.5x as
of June 30, 2013 (on a last twelve months combined basis,
including Virgin Media) and with that at the high end of Moody's
debt tolerance for the category. The confirmation further
acknowledges that the company has signaled that it is no longer
exploring an acquisition of Kabel Deutschland Holding AG (rated
Ba2; under review for upgrade). Given Liberty Global's current
weak positioning in the Ba3 category, any significant slowing of
revenue and profit growth or any material leveraging acquisition
will put pressure on ratings and outlook.
Liberty Global's recent results for the half year to June 30,
2013 include 23 days' worth of consolidated Virgin Media results.
Results remained solid overall with 5.5% revenue growth and 3.9%
OCF growth on a rebased basis for the existing Liberty Global
companies. Had Virgin Media, which is growing more slowly than
the existing Liberty Global group, been included from January 1,
revenue and OCF growth would have been 4.2% and 4.6%
respectively. However, the solid overall performance balances out
continued weakness in the CEE markets (0.6% rebased revenue
growth and a 0.6 % rebased OCF decline for the first half of
2013) and a performance deterioration in the highly competitive
Dutch markets (-0.7%/-2.8%) on the one hand, and continued strong
growth in Germany (+8.9%/+9.6%) and Belgium (+12%/+8%) on the
other. Growth in Belgium was primarily fuelled by continued
strong uptake of Telenet's mobile phone products.
Moody's believes that current revenue and profit trends can
continue broadly for the remainder of the year and into 2014.
This assumes in particular that Liberty Global's German and
Belgian units should continue to benefit from the growth
opportunities in their respective markets. In Holland, it remains
to be seen whether the high level of competitive intensity will
continue unabated or whether recent price increases by key
competitor KPN are indicative of the market environment becoming
more rational.
Liberty Global's management has indicated that notwithstanding
the challenge to integrate Virgin Media, the company will remain
an opportunistic acquirer of cable assets. In this context
Moody's notes not only Liberty Global's interest in acquiring
Kabel Deutschland (no longer pursued), but also the company
recent activity in building a 28.5% stake in Ziggo N.V. (market
value as of early August 2013 around EUR1.7 billion). The
threshold for making a full tender offer is 30% ownership. While
an integration of Liberty Global's Dutch operations (UPC
Netherlands) with Ziggo would make good operational sense and
could yield meaningful operating synergies, Moody's notes that
any leveraging bid for Ziggo would likely result in immediate
negative ratings pressure.
Notwithstanding its large scale M&A activity, Liberty Global is
also continuing an aggressive share repurchase program. In
June 2013 the company committed to a US$3.5 billion stock
repurchase program over two years, which Moody's expects to
absorb a substantial portion of the company's free cash flow
generation. As a consequence, Moody's does not expect any
material reduction in absolute debt amounts in the near term and
de-leveraging will therefore largely be a function of EBITDA
growth.
Liberty Global's Ba3 CFR remains supported by (i) the company's
good geographic diversification; (ii) its substantial scale which
translates into significant purchasing advantages and the ability
to implement best practice across diverse operations and (iii) a
track record of successful acquisition integration.
Liquidity:
Moody's regards Liberty Global's liquidity provision as
sufficient for its current requirements. As of June 30, 2013,
Liberty Global reported cash of US$2.1 billion, of which US$1.4
billion was at the level of the parent company and at non-
operating subsidiaries. In addition, available borrowing capacity
under the various credit facilities within the group totaled $
1.6 billion as of the same date. Liberty Global and its
subsidiaries have no near-term maturities that are material
relative to the size of the group and out of Liberty Global's
total debt at June 30, 2013, around 85% do not fall due before
2018 or thereafter. Liberty Global's main subsidiaries are cash-
flow generative and the company has a track record of up-
streaming cash from them. Moody's notes that Liberty Global
remains dependent on timely distributions from its operating
groups to fund distributions and corporate activity at the parent
level and that distribution capacity at those groups is subject
to restricted payment and covenant tests.
What Could Move The Ratings-Down:
Following the Virgin Media acquisition, Liberty Global's ratings
remain weakly positioned in the Ba3 category. Downgrade pressure
could develop, if:
(i) Liberty Global's acquisition activity and stock repurchase
activity result in leverage as measured by the company's
Debt/EBITDA ratio (setting aside the impact of the Sumitomo
collar loan) exceeding a ratio of 5.5x on a sustained basis
(excluding any unusual currency translation effect on reported
results);
(ii) the company experiences a marked deterioration in its
operating performance; or
(iii) Liberty Global generates negative free cash flow (after
capex and dividends) on a sustained basis.
What Could Move The Ratings-Up
Moody's does not expect any upgrade pressure in the near term.
Over time, continued strong operating performance and achieving a
consolidated leverage ratio (Debt/EBITDA ratio as defined by
Moody's) sustained well below 4.5x (excluding any unusual
currency translation effect on reported results) together with a
FCF/Debt ratio approaching double digits could result in positive
pressure on the ratings.
The principal methodology used in this rating was the Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.
Liberty Global plc., headquartered in London, England is a large,
internationally operating cable operator with combined revenues
(including Virgin Media's pre-acquisition revenue) of around
US$17.4 billion on a first half 2013-annualized basis.
MK LESLIE: In Administration; About 50 Jobs Affected
----------------------------------------------------
BBC News reports that MK Leslie has gone into administration with
the loss of about 50 jobs.
The firm, which was set up in 1993, had seen a reduction in its
workload and had not been paid by other firms which had
collapsed, BBC relates.
According to BBC, people who worked at Dalcross have been offered
help by employment agencies Pace and Skills Development Scotland.
A few staff on Shetland have been retained to assist with
unfinished contracts, BBC notes.
MK Leslie is a Shetland-based civil engineering firm.
PUNCH TAVERNS: Fitch Keeps 'CCC' Ratings on Watch Negative
----------------------------------------------------------
Fitch Ratings has maintained Punch Taverns Finance Plc's (Punch
A) and Punch Taverns Finance B Ltd's (Punch B) notes on Rating
Watch Negative (RWN)
Key Rating Drivers
The maintained RWN reflects that no restructuring of the notes
has yet been agreed upon. Fitch will revisit the credits within
three months and aim to resolve the RWN once it receives more
finite details about the potential restructuring of the notes
issued by both Punch A and Punch B.
The notes were initially placed on RWN in February 2013 following
Punch Taverns plc's announcement of a restructuring proposal.
Since then, Fitch understands that no agreement has been reached
between the stakeholders notably with the bondholders, swap
providers, and monoline insurers.
Rating Sensitivities
If the outcome of the restructuring results in an increased
default risk for some of the notes, this may lead to their
downgrades. In addition, any worsening in performance not
anticipated in Fitch's base case may also result in further
downgrades.
The current ratings for the transactions are:
Punch A:
Class A1(R) fixed-rate notes due 2022: 'BBB-'; RWN
Class A2(R) fixed-rate notes due 2020: 'BBB-'; RWN
Class M1 fixed-rate notes due 2026: 'B'; RWN
Class M2(N) floating-rate notes due 2029: 'B'; RWN
Class B1 fixed-rate notes due 2026: 'CCC'; RWN
Class B2 fixed-rate notes due 2029: 'CCC'; RWN
Class B3 floating-rate notes due 2031: 'CCC'; RWN
Class C(R) fixed-rate notes due 2033: 'CCC'; RWN
Class D1 floating-rate notes 2032: 'CCC'; RWN
Punch B:
Class A3 fixed-rate notes due 2022: 'B+'; RWN
Class A6 fixed-rate notes due 2024: 'B+'; RWN
Class A7 fixed-rate notes due 2033: 'B+'; RWN
Class A8 floating-rate notes due 2033: 'B+'; RWN
Class B1 fixed-rate notes due 2025: 'CCC'; RWN
Class B2 fixed-rate notes due 2028: 'CCC'; RWN
Class C1 floating-rate notes due 2035: 'CCC'; RWN
RESIDENTIAL MORTGAGE 20: Servicer Amendments No Impact on Ratings
-----------------------------------------------------------------
Moody's announced that amendments to the Bank Agreement, the
Cash/Bond Administration Agreement, the Special Servicer
Agreement and the Master Definitions Schedule would not, in and
of itself and as of this time, result in the downgrade or
withdrawal of the notes issued by Residential Mortgage Securities
20 plc.
The amendments to the transaction documents through the execution
of an amendment deed would permit Barclays Bank plc. to modify
certain triggers placed on itself in its roles as account bank
and liquidity facility provider; none of the triggers linked to
Moody's ratings are affected by these amendments.
Moody's has determined that the amendments, in and of themselves
and at this time, will not result in the downgrade or withdrawal
of the notes currently assigned to Residential Mortgage
Securities 20 plc. However, Moody's opinion addresses only the
credit impact associated with the proposed amendment, and Moody's
is not expressing any opinion as to whether the amendment has, or
could have, other non-credit related effects that may have a
detrimental impact on the interests of note holders and/or
counterparties.
The latest rating actions for Residential Mortgage Securities 20
PLC were taken on February 27, 2012:
GBP260.6M A2a Notes, previously on Feb 27, 2012 Downgraded to Aa2
(sf)
EUR176.4M A2c Notes, previously on Feb 27, 2012 Downgraded to Aa2
(sf)
GBP11.5M B1a Notes, previously on Feb 27, 2012 Downgraded to Ba1
(sf)
EUR21.65M B1c Notes, previously on Feb 27, 2012 Downgraded to Ba1
(sf)
MERCs Notes, previously on Feb 27, 2012 Downgraded to Aa2 (sf)
The principal methodology used in this rating was Moody's
Approach to Rating RMBS Using the MILAN Framework published in
May 2013.
TRAVELEX HOLDINGS: S&P Assigns 'B' LT Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to U.K.-based foreign exchange services
provider Travelex Holdings Ltd. The outlook is stable.
"At the same time, we assigned our 'B' long-term issue rating to
Travelex's five-year GBP350 million senior secured notes, in line
with the corporate credit rating. The recovery rating on the
notes is '4', indicating our expectation of average (30%-50%)
recovery in the event of a payment default. We also assigned our
'BB-' issue rating to the undrawn GBP90 million super senior
revolving credit facility (RCF). The recovery rating on the RCF
is '1', indicating our expectation of very high (90%-100%)
recovery in the event of a payment default," S&P said.
"The ratings on Travelex reflect our view of the company's "fair"
business risk profile and its "highly leveraged" financial risk
profile since the completion of the refinancing in July 2013,"
S&P said.
Travelex operates more than 1,300 stores in airports, tourist
spots, and malls, among other locations. It provides foreign
currency services to financial institutions, supermarkets, travel
agencies, and central banks.
"The final terms of the refinancing were in line with our
expectations when we assigned our preliminary 'B' corporate
credit rating on July 22, 2013.
Our assessment of Travelex's business risk profile as "fair"
reflects the company's exposure to the cyclical travel industry,
ongoing trends reducing the share of cash as a payment method,
moderate profitability, and potential margin pressure on the
renewal of concessions. Additionally, we factor in concentration
risks relating to Heathrow airport's 8% contribution to total
revenues (in fiscal 2012) and to wholesale customers, in
particular from Nigeria. Risks from currency swings, although
limited, owing to the company's active hedging practices, also
negatively affect the business risk profile," S&P said.
These weaknesses are partly offset by the company's position as
the largest nonbank provider of travel money worldwide, favorable
long-term trends for air travel volumes, good product and
regional diversification, and a strong franchise.
Moreover, Travelex operates in a complex regulated environment,
which could have a pronounced negative impact on group
operations.
"Nevertheless, we think that such a risk is limited and partly
mitigated by the company's solid track record and by the high
barriers to entry stemming from regulations.
The main factor constraining Travelex's financial risk profile is
its high debt.
"Under our base-case scenario, we expect Standard & Poor's-
adjusted debt to EBITDA of about 18x as of Dec. 31, 2013," S&P
said.
"According to our criteria, we consider the shareholder loans and
preference shares as debt-like. Excluding these instruments, we
forecast adjusted debt to exceed EBITDA by nearly 8x in 2013,
which would be firmly within our "highly leveraged" category for
financial risk. We think that revenue growth of close to 10% in
2014 and an improving EBITDA margin will facilitate a reduction
in these ratios to about 16x and just under 7x, respectively. We
also estimate adjusted EBITDA cash interest cover averaging about
2.0x over 2013-2014. Travelex's strong cash balance and modestly
positive free operating cash flow (FOCF) partly mitigate
the high leverage," S&P said.
"Under our base case, we project that Travelex will achieve
adjusted EBITDA of about GBP70 million for pro forma 2013 and
nearly GBP90 million in 2014. The stable outlook on Travelex
reflects our expectation that the group will continue to derive
positive organic revenue growth of close to 10% and reported
EBITDA margins of at least 10%, based on mid-single-digit growth
in international traveler volumes, opening of new stores and
ATMs, and the successful implementation of business
reorganization and IT platform projects. Adjusted EBITDA cash
interest cover of about 2.0x, positive FOCF, and adequate
liquidity are additional supports of the stable outlook," S&P
said.
"We could lower the ratings on Travelex if unexpected operating
setbacks caused earnings growth to slow to the extent that FOCF
generation turned negative, causing us to deem the capital
structure unsustainable and if adjusted EBITDA cash interest
cover fell below 2.0x for an extended period," S&P said.
"Given the group's highly leveraged capital structure, we
consider a near-term positive rating movement to be unlikely. A
positive rating action would depend on Travelex's sustainable
deleveraging to less than 6x (on an adjusted basis including
shareholder loans and preference shares) and adjusted EBITDA cash
interest cover of above 2.5x," S&P said.
VIRGIN MEDIA: Moody's Confirms 'Ba3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service confirmed the Ba3 Corporate Family
Rating and the Ba3-PD Probability of Default ratings of Virgin
Media, Inc. At the same time Moody's confirmed the ratings of the
senior secured debt instruments issued at Virgin Media Secured
Finance plc. and Virgin Media Investment Holdings Ltd at Ba3 and
of the senior unsecured bonds issued at Virgin Media Finance plc.
at B2. The rating outlook is stable. The rating action concludes
a review first initiated in February 2013 and continued in
June 2013.
Ratings Rationale:
The ratings confirmation and a stable outlook are based on
Moody's expectation that Virgin Media's up-selling strategy and
operating leverage will lead to continued good overall operating
performance with moderate revenue and EBITDA growth. Moody's also
assumes that Virgin Media will achieve some improvement in
leverage ratios. Virgin Media's acquisition by Liberty Global
completed in June resulted in the company's Debt/EBITDA ratio (as
adjusted by Moody's) increasing to around 5.3x as of June 30,
2013 (on a LTM basis) which is at the high end of Moody's debt
tolerance for the category. The confirmation further acknowledges
that Liberty Global has signaled that is no longer exploring an
acquisition of Kabel Deutschland Holding AG (rated Ba2; under
review for upgrade), which removes uncertainties surrounding a
potential near-term funding contribution from its wholly-owned
subsidiaries, including from Virgin Media.
Moody's also understands that an intercompany note due to Liberty
Global that Virgin Media disclosed in a June 2013 8K filing has
been repaid. In this context Moody's highlights that any future
intercompany loan into the Virgin Media group that does not meet
Moody's criteria for equity treatment as described in Moody's
methodology "Debt and Equity Treatment for Hybrid Instruments of
Speculative-Grade Nonfinancial Companies" will be treated as debt
in Moody's leverage calculation, which could depending on quantum
have a negative rating impact.
For the six months ended June 30, 2013 Virgin Media's rebased
revenue increased by 1.9%, driven by a 5.6% growth in cable
revenues (which accounted for 71% of total revenues) and mainly
supported by a price increase implemented in February 2013. Cable
revenues growth was largely offset by 3.5% and 7.3% revenue
declines in the Mobile and Business segments respectively on a
rebased basis. While Virgin Media was able to grow OCF by 6%
year-on-year in the H1 2013 on a rebased basis on the back of
lower marketing expenses, the company expects the costs
associated with Virgin Media's integration with Liberty Global
will negatively impact OCF during the second half of the fiscal
year.
Virgin Media's Ba3 CFR reflects: (i) the resilient operating
performance of the company's cable business considering the
competitive nature of UK broadband and television markets, (ii)
continued improvements in the quality of the broadband and
digital TV offer supported by the DOCSIS 3.0 networks, evidenced
by increased TiVo penetration within the company's footprint and
improved broadband subscriber mix; and (iii) revenue growth
opportunity offered by the Mobile and Business divisions over the
medium term. The rating however also factors in (i) the intense
competition in the company's broadband and television markets
evidenced by muted RGU net adds over the recent quarters; (ii)
the high leverage of around 5.3x (Debt/EBITDA as adjusted by
Moody's) on LTM basis as of June 30, 2013; and (iii) a financial
policy that is now aligned with Liberty Global's more leverage-
tolerant stance.
Moody's views Virgin Media's liquidity profile as adequate. As of
June 30, 2013 the company had GBP274 million of cash on its
balance sheet and GBP660 million available unused credit
facilities (of which only GBP501 million were available as per
Virgin Media Investment Holding's credit facility Q2 2013
covenant compliance reporting requirements). Nearly 80% of Virgin
Media's debt (including capital leases) was scheduled to mature
in 2019 and beyond at the end of Q2 2013. In Moody's view,
internally generated cash flows together with cash in hand should
provide Virgin Media with considerable flexibility for its
operational needs over the next 12 to 18 months. Subject to
covenant compliance any surplus liquidity will likely be up-
streamed to Liberty Global.
Virgin Media's senior secured credit facility stipulates certain
maintenance financial covenants including the following financial
test ratios: (a) the ratio of Senior Net Debt to Annualized
EBITDA for each Ratio Period shall not exceed 4.25:1; and (b) the
ratio of Total Net Debt to Annualized EBITDA for each Ratio
Period shall not exceed 5.5:1. Moody's would expect Virgin Media
to maintain adequate covenant headroom at all times.
The stable outlook reflects Moody's expectations that the Virgin
Media's up-selling strategy and operating leverage will lead to
some moderate growth in revenue and OCF going forward.
What Could Change The Rating Up
Positive ratings development is unlikely in the near term and
would require strong operating performance and accelerating
revenue growth along with leverage as measured by the Debt/EBITDA
(as adjusted by Moody's) ratio falling substantially below 4.5x
and moving toward 4.0x.
What Could Change The Rating Down
Sustained weak operating performance or an increase in
Debt/EBITDA (as adjusted by Moody's) above 5.5x could result in
downward pressure. Furthermore weak liquidity would put downward
pressure on the ratings.
The principal methodology used in these ratings was the Global
Pay Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.
Virgin Media, headquartered in Hook, Hampshire, is the largest
cable operator in the UK. In the last twelve months ending
June 30, 2013, the company generated ~GBP4.1 billion in revenues.
* UK Credit Card Charge-off, Delinquency Indices Stable in Q213
---------------------------------------------------------------
In its newly-published quarterly UK Credit Card Index report in
2013, Fitch Ratings notes that the three-months rolling (3MA)
charge-off and delinquency indices remained at the same level
reached in the previous quarter, 4.5% and 1.8% respectively. The
3MA payment rate index jumped to 20.3% whereas the 3MA gross
yield index decreased to 19.5% over the same period.
All these metrics are impacted by the inclusion of the Delamare
master trust into the index calculation from May. As anticipated,
the inclusion of Delamare -- which contributes around 9% to the
collateral balance backing the indices -- influenced the payment
rate and charge-off indices positively, due to its strong
performance in these areas. The gross yield index is impacted
adversely as the Delamare pool does not create yield as much as
other UK trusts, partly due to high payment rates.
The European Commission's proposal to limit interchange fees for
credit card-based payment transactions are expected to have
indirect impacts on the profile and behavior of credit card users
in the long-term. However, its impact on the ratings of UK credit
card ABS transactions is expected to be limited as the agency has
been applying at least a 50% haircut on the interchange element
of gross yield in anticipation of regulatory pressure on this
item.
Fitch expects annual UK unemployment rates for 2013 and 2014 to
remain relatively stable, at 8.0% and 7.9%, respectively before
it drops to 7.4% in 2015. Fitch has not revised its economic
growth forecast for 2013 and 2014 for the UK, still 0.8% and
1.8%, respectively before it is expected to reach 2% in 2015.
Based on these expectations, the agency believes that UK credit
card performance will remain fairly stable, with only limited
increases in delinquency and charge-off levels, towards the end
of 2013. Fitch therefore maintains its Stable Outlook for this
sector.
===================
U Z B E K I S T A N
===================
* Moody's Says Outlook on Uzbekistan's Banking Sector Stable
------------------------------------------------------------
The outlook for Uzbekistan's banking system remains stable, says
Moody's Investors Service in a new report entitled "Banking
System Outlook: Uzbekistan."
The key driver of the outlook -- which has remained stable since
August 2010 -- is the country's robust economic growth, which
provides favorable operating conditions for the country's banks.
Other key drivers include healthy profits and a slight
improvement in asset quality, as well as stable liquidity that
benefits from growing customer deposits, continued channeling of
government financing through the largest banking institutions,
and limited reliance on wholesale funding.
The credit positive elements are partly offset by some
fundamental weaknesses in Uzbekistan's banking system such as
weak corporate governance, lax credit underwriting standards, the
banks' high exposures to single borrowers and single industries,
as well as their significant reliance on large corporate
depositors. Other weaknesses include a somewhat high level of
problem loans and banks' rapid lending growth, which necessitates
regular capital increases.
Overall, Moody's says that Uzbekistan's robust economic growth
will provide favorable operating conditions for banks over the
12-18 month outlook period, as the country's gross domestic
product (GDP) will increase by 7.0% in 2013 (in real terms),
according to the International Monetary Fund (IMF). However,
downside risks to strong GDP growth stem from a potential fall in
demand for Uzbekistan's key export commodities (cotton, natural
gas and wheat) because of the sluggish growth of the global
economy.
"Asset quality has improved slightly in the Uzbek banking system
over the past 12 months, and we expect the average level of
problem loans in the sector to remain stable over the outlook
period, hovering below 10% of total gross loans, testament to the
growing economy," explains Olga Ulyanova, a Moody's Vice
President Senior Analyst, and author of the report. "However, our
scenario analysis reveals low coverage of the reported problem
loans by loan-loss reserves and we estimate that Uzbek banks will
need to increase these reserves to around 7.8% of gross loans
(from 4.4% at year-end 2012) in order to fully cover expected
losses," adds Ms. Ulyanova.
Moody's also forecasts 20% annual lending growth which --
together with more prudent provisioning policies -- will push the
Uzbek system's total capital adequacy ratio (CAR) down to a still
acceptable 12.3% over the next 12-18 months, from the 16.7%
average reported by rated Uzbek banks at year-end 2012. However,
the rating agency estimates that in order to preserve the current
total CAR in line with loan growth, the Uzbek banking sector will
need to raise an additional $650 million of fresh capital in
2013-14. In particular, as regards the recapitalization of
systemically important (predominantly state-controlled) banks,
Moody's notes that the government has favored regulatory
forbearance rather than providing capital injections.
In Moody's view, a key downside risk for profitability is the
need for Uzbek banks to make additional loan loss provisions.
Nonetheless, the rating agency generally expects banks to
maintain profitability indicators -- such as return on assets and
return on equity -- at current levels, supported by robust fees
and commissions and stable, albeit narrow, net interest margins
of just over 3%.
===============
X X X X X X X X
===============
* Fitch Takes Rating Actions on 12 European SF CDOs
---------------------------------------------------
Fitch Ratings has affirmed 30 tranches and downgraded four
tranches of 12 European structured finance collateralized debt
obligation (SF CDO) transactions. Simultaneously, the agency has
withdrawn the ratings of 4 tranches and 1 tranche has been paid
in full.
Key Rating Drivers
Fitch believes the affected transactions are highly distressed,
as reflected by the highest rating of 'CCsf' in the transactions,
except for House of Europe 1's certificates and House of Europe
3's class E notes. These are rated on a principal-only basis and
benefit from the support of zero-coupon French government bonds
to repay the notes' notional. The performance of the affected
transactions has been in line with Fitch's expectations since the
previous review in August 2012. Fitch has therefore affirmed the
majority of the tranches, generally at the low ratings of 'CCsf'
and below.
Fitch has downgraded Anthracite Euro CRE CDO 2006-1 p.l.c.'s
class B to 'Csf' from 'CCsf' following performance deterioration.
Since the previous review in August 2012, defaulted assets have
increased to 81.7% from 53.6% of the portfolio on a notional
basis.
Fitch has withdrawn the rating of Brooklands Euro Referenced
Linked Notes 2002-1 Ltd's class D, E1 and E2. Class C has been
paid in full, class D was redeemed at 92% and class E1 and E2
were terminated.
Fitch has downgraded Cloverie Plc Series 2004-72 to 'Dsf' and has
subsequently withdrawn the rating following confirmation from the
trustee that the deal was terminated in January 2013. The Note
Holder received 5% of the outstanding balance at termination.
Fitch has also downgraded Cloverie Plc Series 2004-77 and
Cloverie Plc Series 2005-04 to 'Csf' from 'CCsf' due to
significant negative rating migration in the portfolio.
RATING SENSITIVITIES
Most notes are already at distressed rating levels, and as such
are unlikely to be affected by any further deterioration in the
respective underlying asset portfolios. Fitch views the default
of any tranche rated 'Csf' as inevitable. For House of Europe 1's
certificates and House of Europe 3's class E notes, the rating is
linked to the sovereign rating of France.
Anthracite Euro CRE CDO 2006-1 p.l.c.'s
Class A (ISIN XS0276697272): affirmed at 'CCsf'
Class B (ISIN XS0276697512): downgraded to 'Csf' from 'CCsf'
Class C (ISIN XS0276698163): affirmed at 'Csf'
Class D (ISIN XS0276698833): affirmed at 'Csf'
Class E (ISIN XS0276699302): affirmed at 'Csf'
Brooklands Euro Referenced Linked Notes 2002-1 Ltd
Class C (ISIN XS0148887994): PIF
Class D (ISIN XS0148888372): Rating withdrawn
Class E1 (ISIN XS0148888703): Rating withdrawn
Class E2 (ISIN XS0148889180): Rating withdrawn
Brooklands Euro Referenced Linked Notes 2005-1 Ltd
Class D1 (ISIN XS0226777133): affirmed at 'Csf'
Class D2 (ISIN XS0226777216): affirmed at 'Csf'
Class E (ISIN XS0226777729): affirmed at 'Dsf'
Cloverie Plc Series 2004-72
Series 2004-72 (ISIN XS0205981581): downgraded to 'Dsf' from
'CCsf' and rating withdrawn
Cloverie Plc Series 2004-77
Series 2004-77 (ISIN XS0207605162): downgraded to 'Csf' from
'CCsf'
Cloverie's Series 2005-04
Series 2005-04 (ISIN XS0212294077): downgraded to 'Csf' from
'CCsf'
Delta CDO Series plc 2005-1
Class B (ISIN XS0218111739): affirmed at 'Csf'
Class C (ISIN XS0218113198): affirmed at 'Csf'
Class D (ISIN XS0218113602): affirmed at 'Csf'
Delta CDO plc Series 2005-2
Class B-1 (ISIN US24741NAD57): affirmed at 'Csf'
Class C-1 (ISIN US24741NAE31): affirmed at 'Csf'
Class E-1 (ISIN US24741NAG88): affirmed at 'Csf'
High Tide CDO I S.A.
Class A (ISIN XS0169669081): affirmed at 'CCsf'
Class B (ISIN XS0169669164): affirmed at 'CCsf'
Class C (ISIN XS0169669248): affirmed at 'Csf'
House of Europe Funding I, Ltd
Class A (XS0220241086): affirmed at 'Csf'
Class B (XS0220241755): affirmed at 'Csf'
Class C (XS0220242134): affirmed at 'Csf'
Class C additional interest (interest only): affirmed at 'Csf'
Certificates: affirmed at 'AA+sf'; Stable Outlook
House of Europe Funding III PLC's
Class A (XS0202218284): affirmed at 'Csf'
Class B (XS0202219092): affirmed at 'Csf'
Class C (XS0202219415): affirmed at 'Csf'
Class D (XS0202221072): affirmed at 'Csf'
Class E (XS0202221155): affirmed at 'AA+sf'; Stable Outlook
Tempo CDO 1 Ltd
Class A (ISIN XS0179909774): affirmed at 'Csf'
Class B (ISIN XS0179909931): affirmed at 'Csf'
Class C (ISIN XS0179910517): affirmed at 'Dsf'
Class D (ISIN XS0179910780): affirmed at 'Dsf'
* European Investors Trust Central Banks on Smooth QE Exit
----------------------------------------------------------
More European investors now see the withdrawal of central bank
stimulus as a bigger risk to European credit markets than
eurozone sovereign debt problems, but most believe central banks
will tighten policy without threatening the economic recovery,
according to Fitch Ratings' latest quarterly investor survey.
"The risk posed by the winding down of quantitative easing was
deemed high by 68% of survey respondents, up from just 19% in our
April survey, and an all-time-high since we introduced this
question in mid-2011. Sovereign debt problems were identified as
a high risk by 65% of respondents, while 71% said a prolonged
recession poses a high risk to European credit markets, down from
86% in our previous survey," Fitch says.
"However, nearly three-quarters -- 73% -- thought that central
banks will reduce stimulus in a timely and smooth manner
following the initial shock to financial markets caused by Fed
Chairman Ben Bernanke's comments on the Fed's exit strategy in
late May. Only 9% feel that rates will rise too quickly, causing
bond yields to jump, whereas 18% view monetary policy action as
too slow, increasing the risk of asset bubbles.
"Our survey period ran from July 1-July 31, during which time the
ECB said it would keep rates at their current or lower levels
"for an extended period of time," while the Bank of England said
that market expectations that rates would rise were "not
warranted." This appears to have strengthened investor confidence
in central banks' ability to manage policy without derailing a
fragile economic recovery as the proportion of survey respondents
indicating confidence in the process rose sharply from 44% in
early July to the final 73%.
"Given central bank sensitivities to potential market disruption,
Fitch thinks they will attempt to unwind the stimulus gradually.
But we still expect the effort to generate periodic bouts of
market volatility. Ultra-loose monetary policy has the potential
to create asset bubbles, and we believe there is already evidence
of this in select markets, such as highly levered corporate loans
and US private student loans.
"Fitch's Q313 survey represents the views of managers of an
estimated EUR5.6trn of fixed-income assets. We will publish the
full survey results in mid-August."
* Investors Say Banking Union Will Not Reduce Default Risk
----------------------------------------------------------
European investors do not believe banking union will reduce
default risk for banks in the eurozone, according to a Fitch
Ratings quarterly investor survey conducted in July.
Over a third (39%) believe this is because not all three pillars
- common supervision, resolution mechanism and centralized
deposit insurance - will be fully implemented. Twenty-seven
percent expect independent resolution to mean that banks are less
likely to be supported. A small number of investors (6%) consider
that even assuming full implementation the proposed measures are
insufficient. This leaves just 28% of survey respondents who are
optimistic that the regulation shift will reduce default risk.
The publication of the European Commission's proposal for a
single resolution mechanism (SRM) on July 10 had a positive
impact on the survey responses. Belief that the union would
reduce default risk rose from 20% before this date to 35%
afterwards.
In Fitch's view, the different pillars of the banking union have
different impacts on the risks for European bank creditors, which
may have conflicting implications for default risk. "We expect
the first pillar, the single supervisory mechanism (SSM) centered
on the European Central Bank, to be in place by end-2014. The SRM
is the second and probably final pillar now that some form of
depositor preference will be built into the final bank recovery
and resolution directive," Fitch says.
A single supervisor should bring consistency and comparability of
risk measurement and reporting. Many national regulators have
already reviewed asset valuations and required banks to
strengthen capital ahead of the SSM's balance-sheet assessment,
which may be combined with the European Banking Authority's EU-
wide stress test. This should help reduce bank failure risk.
However, the SRM could make sovereign support for banks less
likely, or at least make it more likely that senior creditors
would have to share the burden. A single resolution board making
objective and balanced decisions could reduce hesitation in the
intervention and resolution of a weak bank, reducing total costs
so the burden for the sovereign can be limited. If the final
proposals mean sovereign support is weakening, investors are
likely to differentiate more between weak and strong banks.
The survey also shows more positive investor sentiment towards
banks generally. The sector is the most represented of all
corporate sectors in investor portfolios and the second most
favored marginal investment choice (behind high yield). Survey
respondents were most bullish on the outlook for fundamental
credit conditions in the financial segment, and expected spreads
to remain at current ranges or tighten, while they forecast
issuance to reduce in absolute terms as well as relative all
other sectors.
Fitch conducted the Q313 survey between July 1 and July 31. It
represents the views of managers of an estimated EUR5.6 trillion
of fixed-income assets. "We will publish the full survey results
in mid-August," Fitch says.
* BOND PRICING: For the Week August 5 to August 9, 2013
-------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
A-TEC INDUSTRIES 8.750 10/27/2014 EUR 27.75
A-TEC INDUSTRIES 2.750 5/10/2014 EUR 29.13
IMMOFINANZ 4.250 3/8/2018 EUR 4.29
RAIFF CENTROBANK 8.907 7/24/2013 EUR 58.30
RAIFF CENTROBANK 8.588 1/23/2013 EUR 73.37
RAIFF CENTROBANK 7.965 1/23/2013 EUR 55.53
RAIFF CENTROBANK 7.873 1/23/2013 EUR 66.96
RAIFF CENTROBANK 7.646 1/23/2013 EUR 45.43
RAIFF CENTROBANK 5.097 1/23/2013 EUR 58.24
RAIFF CENTROBANK 8.417 1/22/2014 EUR 67.62
RAIFF CENTROBANK 7.122 1/22/2014 EUR 66.49
RAIFF CENTROBANK 11.134 7/24/2013 EUR 66.13
RAIFF CENTROBANK 9.200 7/24/2013 EUR 56.71
RAIFF CENTROBANK 9.304 1/23/2013 EUR 62.19
RAIFF CENTROBANK 9.876 1/23/2013 EUR 60.11
RAIFF CENTROBANK 9.558 1/23/2013 EUR 67.69
RAIFF CENTROBANK 8.920 1/23/2013 EUR 52.62
BELGIUM
-------
ECONOCOM GROUP 4.000 6/1/2016 EUR 22.94
TALVIVAARA 4.000 12/16/2015 EUR 72.61
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 12.38
ALCATEL-LUCENT 5.000 1/1/2015 EUR 2.62
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 5.62
ASSYSTEM 4.000 1/1/2017 EUR 23.27
ATOS ORIGIN SA 2.500 1/1/2016 EUR 58.17
CAP GEMINI SOGET 3.500 1/1/2014 EUR 38.69
CGG VERITAS 1.750 1/1/2016 EUR 31.64
CLUB MEDITERRANE 6.110 11/1/2015 EUR 17.80
EURAZEO 6.250 6/10/2014 EUR 55.33
FAURECIA 3.250 1/1/2018 EUR 17.91
FAURECIA 4.500 1/1/2015 EUR 19.45
INGENICO 2.750 1/1/2017 EUR 48.14
MAUREL ET PROM 7.125 7/31/2015 EUR 17.13
MAUREL ET PROM 7.125 7/31/2014 EUR 18.15
NEXANS SA 2.500 1/1/2019 EUR 66.69
NEXANS SA 4.000 1/1/2016 EUR 56.09
ORPEA 3.875 1/1/2016 EUR 47.89
PEUGEOT SA 4.450 1/1/2016 EUR 23.56
PIERRE VACANCES 4.000 10/1/2015 EUR 73.63
PUBLICIS GROUPE 1.000 1/18/2018 EUR 54.06
SOC AIR FRANCE 2.750 4/1/2020 EUR 21.24
SOITEC 6.250 9/9/2014 EUR 7.25
TEM 4.250 1/1/2015 EUR 54.36
GERMANY
-------
BNP EMIS-U.HANDE 9.750 12/28/2012 EUR 58.32
BNP EMIS-U.HANDE 10.500 12/28/2012 EUR 47.62
BNP EMIS-U.HANDE 9.500 12/31/2012 EUR 64.67
BNP EMIS-U.HANDE 7.750 12/31/2012 EUR 49.92
COMMERZBANK AG 6.000 12/27/2012 EUR 73.49
COMMERZBANK AG 7.000 12/27/2012 EUR 60.71
COMMERZBANK AG 13.000 12/28/2012 EUR 47.48
COMMERZBANK AG 16.750 1/3/2013 EUR 73.77
COMMERZBANK AG 8.400 12/30/2013 EUR 13.74
COMMERZBANK AG 8.000 12/27/2012 EUR 43.32
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 69.20
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 64.90
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 67.10
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 72.90
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 71.60
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 74.20
DEUTSCHE BANK AG 12.000 2/28/2013 EUR 75.00
DEUTSCHE BANK AG 11.000 4/2/2013 EUR 73.80
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 69.50
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 72.10
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 70.30
DEUTSCHE BANK AG 15.000 2/20/2013 EUR 68.00
DEUTSCHE BANK AG 11.000 1/18/2013 EUR 73.10
DEUTSCHE BANK AG 15.000 12/20/2012 EUR 62.10
DEUTSCHE BANK AG 12.000 12/20/2012 EUR 66.50
DEUTSCHE BANK AG 12.000 12/20/2012 EUR 41.90
DEUTSCHE BANK AG 12.000 12/20/2012 EUR 68.10
DEUTSCHE BANK AG 10.000 12/20/2012 EUR 74.90
DEUTSCHE BANK AG 10.000 12/20/2012 EUR 72.10
DEUTSCHE BANK AG 10.000 12/20/2012 EUR 63.00
DEUTSCHE BANK AG 9.000 12/20/2012 EUR 62.90
DEUTSCHE BANK AG 9.000 12/20/2012 EUR 73.40
DEUTSCHE BANK AG 8.000 12/20/2012 EUR 61.20
DEUTSCHE BANK AG 8.000 12/20/2012 EUR 70.40
DEUTSCHE BANK AG 8.000 12/20/2012 EUR 69.50
DEUTSCHE BANK AG 8.000 12/20/2012 EUR 38.60
DEUTSCHE BANK AG 7.000 12/20/2012 EUR 69.40
DEUTSCHE BANK AG 12.000 11/29/2012 EUR 65.20
DEUTSCHE BANK AG 9.000 11/29/2012 EUR 67.10
DEUTSCHE BANK AG 6.500 6/28/2013 EUR 53.50
DEUTSCHE BANK AG 12.000 4/2/2013 EUR 74.50
DEUTSCHE BANK AG 8.000 11/29/2012 EUR 71.50
DZ BANK AG 15.500 10/25/2013 EUR 71.05
DZ BANK AG 15.750 9/27/2013 EUR 74.86
DZ BANK AG 15.750 7/26/2013 EUR 71.21
DZ BANK AG 15.000 7/26/2013 EUR 75.00
DZ BANK AG 6.000 7/26/2013 EUR 69.50
DZ BANK AG 22.000 6/28/2013 EUR 73.36
DZ BANK AG 18.000 6/28/2013 EUR 69.28
DZ BANK AG 14.000 6/28/2013 EUR 73.43
DZ BANK AG 6.500 6/28/2013 EUR 67.14
DZ BANK AG 6.000 6/28/2013 EUR 65.07
DZ BANK AG 19.500 4/26/2013 EUR 61.83
DZ BANK AG 18.500 4/26/2013 EUR 57.11
DZ BANK AG 17.000 4/26/2013 EUR 15.42
DZ BANK AG 16.500 4/26/2013 EUR 59.63
DZ BANK AG 15.750 4/26/2013 EUR 43.33
DZ BANK AG 14.500 4/26/2013 EUR 56.77
DZ BANK AG 20.000 3/22/2013 EUR 70.81
DZ BANK AG 18.500 3/22/2013 EUR 74.74
DZ BANK AG 13.000 3/22/2013 EUR 74.16
DZ BANK AG 13.000 3/22/2013 EUR 73.95
DZ BANK AG 12.500 3/22/2013 EUR 72.97
DZ BANK AG 12.250 3/22/2013 EUR 74.07
DZ BANK AG 13.750 3/8/2013 EUR 54.29
DZ BANK AG 10.000 3/8/2013 EUR 68.17
DZ BANK AG 9.750 3/8/2013 EUR 73.96
DZ BANK AG 15.000 2/22/2013 EUR 74.66
DZ BANK AG 10.000 11/23/2012 EUR 72.63
DZ BANK AG 18.000 1/25/2013 EUR 61.25
DZ BANK AG 19.000 1/25/2013 EUR 44.10
DZ BANK AG 10.250 2/8/2013 EUR 71.38
DZ BANK AG 10.250 2/8/2013 EUR 71.88
DZ BANK AG 15.000 2/22/2013 EUR 70.66
DZ BANK AG 15.000 2/22/2013 EUR 71.94
DZ BANK AG 15.000 2/22/2013 EUR 69.43
DZ BANK AG 15.000 2/22/2013 EUR 73.27
DZ BANK AG 15.000 2/22/2013 EUR 68.24
DZ BANK AG 15.000 2/22/2013 EUR 67.09
DZ BANK AG 11.500 11/23/2012 EUR 74.94
DZ BANK AG 16.750 11/23/2012 EUR 63.46
DZ BANK AG 20.000 11/23/2012 EUR 41.34
DZ BANK AG 5.000 12/14/2012 EUR 69.68
DZ BANK AG 9.750 12/14/2012 EUR 66.05
DZ BANK AG 6.000 1/2/2013 EUR 74.23
DZ BANK AG 9.500 1/2/2013 EUR 71.10
DZ BANK AG 12.000 1/2/2013 EUR 65.09
DZ BANK AG 16.250 1/2/2013 EUR 68.65
DZ BANK AG 10.500 1/11/2013 EUR 66.00
DZ BANK AG 14.000 1/11/2013 EUR 48.04
DZ BANK AG 15.500 1/11/2013 EUR 53.41
DZ BANK AG 12.500 1/25/2013 EUR 50.73
GOLDMAN SACHS CO 13.000 3/20/2013 EUR 74.90
GOLDMAN SACHS CO 17.000 3/20/2013 EUR 73.30
GOLDMAN SACHS CO 16.000 6/26/2013 EUR 74.30
GOLDMAN SACHS CO 18.000 3/20/2013 EUR 69.10
GOLDMAN SACHS CO 14.000 12/28/2012 EUR 72.60
GOLDMAN SACHS CO 15.000 12/28/2012 EUR 71.70
GOLDMAN SACHS CO 13.000 12/27/2013 EUR 72.70
HSBC TRINKAUS 25.500 6/28/2013 EUR 57.61
HSBC TRINKAUS 30.000 6/28/2013 EUR 46.90
HSBC TRINKAUS 26.000 6/28/2013 EUR 48.63
HSBC TRINKAUS 7.500 3/22/2013 EUR 74.76
HSBC TRINKAUS 7.500 3/22/2013 EUR 74.06
HSBC TRINKAUS 8.000 3/22/2013 EUR 67.07
HSBC TRINKAUS 8.500 3/22/2013 EUR 67.98
HSBC TRINKAUS 10.500 3/22/2013 EUR 72.84
HSBC TRINKAUS 10.500 3/22/2013 EUR 62.42
HSBC TRINKAUS 10.500 3/22/2013 EUR 45.38
HSBC TRINKAUS 10.500 3/22/2013 EUR 65.52
HSBC TRINKAUS 12.000 3/22/2013 EUR 72.94
HSBC TRINKAUS 13.000 3/22/2013 EUR 60.74
HSBC TRINKAUS 13.500 3/22/2013 EUR 60.07
HSBC TRINKAUS 13.500 3/22/2013 EUR 61.08
HSBC TRINKAUS 14.000 3/22/2013 EUR 74.53
HSBC TRINKAUS 14.000 3/22/2013 EUR 61.21
HSBC TRINKAUS 15.000 3/22/2013 EUR 71.40
HSBC TRINKAUS 15.500 3/22/2013 EUR 41.52
HSBC TRINKAUS 16.000 3/22/2013 EUR 72.28
HSBC TRINKAUS 16.000 3/22/2013 EUR 67.45
HSBC TRINKAUS 16.500 3/22/2013 EUR 74.88
HSBC TRINKAUS 17.500 3/22/2013 EUR 58.58
HSBC TRINKAUS 17.500 3/22/2013 EUR 65.46
HSBC TRINKAUS 17.500 3/22/2013 EUR 56.90
HSBC TRINKAUS 18.000 3/22/2013 EUR 74.29
HSBC TRINKAUS 18.000 3/22/2013 EUR 69.93
HSBC TRINKAUS 18.000 3/22/2013 EUR 66.09
HSBC TRINKAUS 18.500 3/22/2013 EUR 55.92
HSBC TRINKAUS 18.500 3/22/2013 EUR 73.85
HSBC TRINKAUS 18.500 3/22/2013 EUR 69.38
HSBC TRINKAUS 18.500 3/22/2013 EUR 39.60
HSBC TRINKAUS 19.000 3/22/2013 EUR 55.12
HSBC TRINKAUS 19.500 3/22/2013 EUR 71.17
HSBC TRINKAUS 19.500 3/22/2013 EUR 67.58
HSBC TRINKAUS 20.000 3/22/2013 EUR 72.33
HSBC TRINKAUS 20.500 3/22/2013 EUR 56.78
HSBC TRINKAUS 21.000 3/22/2013 EUR 70.74
HSBC TRINKAUS 21.000 3/22/2013 EUR 54.43
HSBC TRINKAUS 21.000 3/22/2013 EUR 70.19
HSBC TRINKAUS 22.000 3/22/2013 EUR 38.33
HSBC TRINKAUS 22.000 3/22/2013 EUR 54.00
HSBC TRINKAUS 22.500 3/22/2013 EUR 67.68
HSBC TRINKAUS 23.000 3/22/2013 EUR 52.08
HSBC TRINKAUS 23.500 3/22/2013 EUR 65.24
HSBC TRINKAUS 24.000 3/22/2013 EUR 61.96
HSBC TRINKAUS 24.000 3/22/2013 EUR 67.46
HSBC TRINKAUS 24.000 3/22/2013 EUR 73.10
HSBC TRINKAUS 26.500 3/22/2013 EUR 61.24
HSBC TRINKAUS 27.000 3/22/2013 EUR 53.26
HSBC TRINKAUS 27.500 3/22/2013 EUR 43.48
HSBC TRINKAUS 6.000 6/28/2013 EUR 74.16
HSBC TRINKAUS 6.500 6/28/2013 EUR 68.24
HSBC TRINKAUS 7.000 6/28/2013 EUR 73.22
HSBC TRINKAUS 8.000 6/28/2013 EUR 49.20
HSBC TRINKAUS 8.000 6/28/2013 EUR 72.27
HSBC TRINKAUS 8.500 6/28/2013 EUR 69.16
HSBC TRINKAUS 10.000 6/28/2013 EUR 73.12
HSBC TRINKAUS 10.000 6/28/2013 EUR 67.56
HSBC TRINKAUS 10.000 6/28/2013 EUR 67.11
HSBC TRINKAUS 10.500 6/28/2013 EUR 46.20
HSBC TRINKAUS 11.000 6/28/2013 EUR 63.23
HSBC TRINKAUS 12.500 6/28/2013 EUR 63.33
HSBC TRINKAUS 13.500 6/28/2013 EUR 61.67
HSBC TRINKAUS 14.000 6/28/2013 EUR 70.50
HSBC TRINKAUS 14.000 6/28/2013 EUR 43.06
HSBC TRINKAUS 14.000 6/28/2013 EUR 61.82
HSBC TRINKAUS 15.500 6/28/2013 EUR 67.79
HSBC TRINKAUS 16.500 6/28/2013 EUR 59.22
HSBC TRINKAUS 16.500 6/28/2013 EUR 41.80
HSBC TRINKAUS 16.500 6/28/2013 EUR 71.08
HSBC TRINKAUS 16.500 6/28/2013 EUR 59.77
HSBC TRINKAUS 16.500 6/28/2013 EUR 67.72
HSBC TRINKAUS 17.000 6/28/2013 EUR 57.46
HSBC TRINKAUS 17.500 6/28/2013 EUR 74.75
HSBC TRINKAUS 17.500 6/28/2013 EUR 71.43
HSBC TRINKAUS 18.000 6/28/2013 EUR 70.95
HSBC TRINKAUS 18.500 6/28/2013 EUR 73.14
HSBC TRINKAUS 18.500 6/28/2013 EUR 57.51
HSBC TRINKAUS 19.000 6/28/2013 EUR 40.97
HSBC TRINKAUS 19.000 6/28/2013 EUR 74.92
HSBC TRINKAUS 19.500 6/28/2013 EUR 71.78
HSBC TRINKAUS 19.500 6/28/2013 EUR 59.74
HSBC TRINKAUS 19.500 6/28/2013 EUR 56.67
HSBC TRINKAUS 19.500 6/28/2013 EUR 71.65
HSBC TRINKAUS 21.000 6/28/2013 EUR 54.87
HSBC TRINKAUS 21.000 6/28/2013 EUR 64.56
HSBC TRINKAUS 21.500 6/28/2013 EUR 68.02
HSBC TRINKAUS 22.500 6/28/2013 EUR 60.02
HSBC TRINKAUS 23.500 6/28/2013 EUR 64.88
LANDESBK BERLIN 5.500 12/23/2013 EUR 72.60
LB BADEN-WUERTT 9.000 7/26/2013 EUR 74.42
LB BADEN-WUERTT 6.000 8/23/2013 EUR 74.40
LB BADEN-WUERTT 7.000 8/23/2013 EUR 72.18
LB BADEN-WUERTT 9.000 8/23/2013 EUR 69.10
LB BADEN-WUERTT 10.000 8/23/2013 EUR 73.11
LB BADEN-WUERTT 10.000 8/23/2013 EUR 71.91
LB BADEN-WUERTT 12.000 8/23/2013 EUR 68.83
LB BADEN-WUERTT 12.000 8/23/2013 EUR 69.40
LB BADEN-WUERTT 7.000 9/27/2013 EUR 74.38
LB BADEN-WUERTT 9.000 9/27/2013 EUR 71.33
LB BADEN-WUERTT 11.000 6/28/2013 EUR 67.25
LB BADEN-WUERTT 11.000 9/27/2013 EUR 70.06
LB BADEN-WUERTT 7.000 6/28/2013 EUR 73.23
LB BADEN-WUERTT 7.500 6/28/2013 EUR 67.52
LB BADEN-WUERTT 7.500 6/28/2013 EUR 72.98
LB BADEN-WUERTT 7.500 6/28/2013 EUR 73.55
LB BADEN-WUERTT 9.000 6/28/2013 EUR 69.23
LB BADEN-WUERTT 10.000 6/28/2013 EUR 71.99
LB BADEN-WUERTT 10.000 6/28/2013 EUR 68.21
LB BADEN-WUERTT 10.000 6/28/2013 EUR 65.70
LB BADEN-WUERTT 5.000 11/23/2012 EUR 49.15
LB BADEN-WUERTT 5.000 11/23/2012 EUR 18.44
LB BADEN-WUERTT 5.000 11/23/2012 EUR 49.68
LB BADEN-WUERTT 5.000 11/23/2012 EUR 70.65
LB BADEN-WUERTT 5.000 11/23/2012 EUR 71.98
LB BADEN-WUERTT 7.500 11/23/2012 EUR 73.69
LB BADEN-WUERTT 7.500 11/23/2012 EUR 41.51
LB BADEN-WUERTT 7.500 11/23/2012 EUR 67.76
LB BADEN-WUERTT 7.500 11/23/2012 EUR 42.64
LB BADEN-WUERTT 7.500 11/23/2012 EUR 64.20
LB BADEN-WUERTT 7.500 11/23/2012 EUR 15.76
LB BADEN-WUERTT 7.500 11/23/2012 EUR 61.12
LB BADEN-WUERTT 7.500 11/23/2012 EUR 63.31
LB BADEN-WUERTT 10.000 11/23/2012 EUR 36.96
LB BADEN-WUERTT 10.000 11/23/2012 EUR 14.49
LB BADEN-WUERTT 10.000 11/23/2012 EUR 58.79
LB BADEN-WUERTT 10.000 11/23/2012 EUR 55.36
LB BADEN-WUERTT 10.000 11/23/2012 EUR 71.19
LB BADEN-WUERTT 10.000 11/23/2012 EUR 69.90
LB BADEN-WUERTT 10.000 11/23/2012 EUR 67.15
LB BADEN-WUERTT 10.000 11/23/2012 EUR 38.06
LB BADEN-WUERTT 10.000 11/23/2012 EUR 56.82
LB BADEN-WUERTT 10.000 11/23/2012 EUR 70.92
LB BADEN-WUERTT 10.000 11/23/2012 EUR 74.57
LB BADEN-WUERTT 10.000 11/23/2012 EUR 56.18
LB BADEN-WUERTT 15.000 11/23/2012 EUR 46.61
LB BADEN-WUERTT 5.000 1/4/2013 EUR 51.63
LB BADEN-WUERTT 5.000 1/4/2013 EUR 38.27
LB BADEN-WUERTT 5.000 1/4/2013 EUR 67.54
LB BADEN-WUERTT 5.000 1/4/2013 EUR 18.70
LB BADEN-WUERTT 5.000 1/4/2013 EUR 57.92
LB BADEN-WUERTT 5.000 1/4/2013 EUR 63.31
LB BADEN-WUERTT 7.500 1/4/2013 EUR 54.39
LB BADEN-WUERTT 7.500 1/4/2013 EUR 65.07
LB BADEN-WUERTT 7.500 1/4/2013 EUR 51.99
LB BADEN-WUERTT 7.500 1/4/2013 EUR 32.90
LB BADEN-WUERTT 7.500 1/4/2013 EUR 58.58
LB BADEN-WUERTT 7.500 1/4/2013 EUR 72.77
LB BADEN-WUERTT 7.500 1/4/2013 EUR 16.46
LB BADEN-WUERTT 7.500 1/4/2013 EUR 59.10
LB BADEN-WUERTT 7.500 1/4/2013 EUR 67.25
LB BADEN-WUERTT 10.000 1/4/2013 EUR 66.61
LB BADEN-WUERTT 10.000 1/4/2013 EUR 30.35
LB BADEN-WUERTT 10.000 1/4/2013 EUR 52.62
LB BADEN-WUERTT 10.000 1/4/2013 EUR 70.66
LB BADEN-WUERTT 10.000 1/4/2013 EUR 15.06
LB BADEN-WUERTT 10.000 1/4/2013 EUR 52.34
LB BADEN-WUERTT 10.000 1/4/2013 EUR 60.85
LB BADEN-WUERTT 10.000 1/4/2013 EUR 49.73
LB BADEN-WUERTT 10.000 1/4/2013 EUR 61.11
LB BADEN-WUERTT 10.000 1/4/2013 EUR 58.93
LB BADEN-WUERTT 5.000 1/25/2013 EUR 74.47
LB BADEN-WUERTT 5.000 1/25/2013 EUR 72.12
LB BADEN-WUERTT 5.000 1/25/2013 EUR 25.04
LB BADEN-WUERTT 7.500 1/25/2013 EUR 22.14
LB BADEN-WUERTT 7.500 1/25/2013 EUR 65.50
LB BADEN-WUERTT 7.500 1/25/2013 EUR 61.75
LB BADEN-WUERTT 7.500 1/25/2013 EUR 67.92
LB BADEN-WUERTT 7.500 1/25/2013 EUR 65.65
LB BADEN-WUERTT 10.000 1/25/2013 EUR 73.79
LB BADEN-WUERTT 10.000 1/25/2013 EUR 57.74
LB BADEN-WUERTT 10.000 1/25/2013 EUR 70.62
LB BADEN-WUERTT 10.000 1/25/2013 EUR 61.42
LB BADEN-WUERTT 10.000 1/25/2013 EUR 55.00
LB BADEN-WUERTT 10.000 1/25/2013 EUR 62.58
LB BADEN-WUERTT 10.000 1/25/2013 EUR 72.60
LB BADEN-WUERTT 10.000 1/25/2013 EUR 20.18
LB BADEN-WUERTT 10.000 1/25/2013 EUR 74.43
LB BADEN-WUERTT 5.000 2/22/2013 EUR 72.06
LB BADEN-WUERTT 7.500 2/22/2013 EUR 62.21
LB BADEN-WUERTT 10.000 2/22/2013 EUR 55.52
LB BADEN-WUERTT 15.000 2/22/2013 EUR 47.17
LB BADEN-WUERTT 8.000 3/22/2013 EUR 68.03
LB BADEN-WUERTT 10.000 3/22/2013 EUR 65.16
LB BADEN-WUERTT 12.000 3/22/2013 EUR 66.23
LB BADEN-WUERTT 15.000 3/22/2013 EUR 74.79
LB BADEN-WUERTT 15.000 3/22/2013 EUR 59.20
LB BADEN-WUERTT 5.000 6/28/2013 EUR 68.83
MACQUARIE STRUCT 13.250 1/2/2013 EUR 67.09
MACQUARIE STRUCT 18.000 12/14/2012 EUR 63.38
Q-CELLS 6.750 10/21/2015 EUR 1.08
QIMONDA FINANCE 6.750 3/22/2013 USD 4.50
SOLON AG SOLAR 1.375 12/6/2012 EUR 0.58
TAG IMMO AG 6.500 12/10/2015 EUR 9.73
TUI AG 2.750 3/24/2016 EUR 56.50
VONTOBEL FIN PRO 11.150 3/22/2013 EUR 68.40
VONTOBEL FIN PRO 11.850 3/22/2013 EUR 55.54
VONTOBEL FIN PRO 12.000 3/22/2013 EUR 65.10
VONTOBEL FIN PRO 12.050 3/22/2013 EUR 62.30
VONTOBEL FIN PRO 12.200 3/22/2013 EUR 43.92
VONTOBEL FIN PRO 12.200 3/22/2013 EUR 70.66
VONTOBEL FIN PRO 12.700 3/22/2013 EUR 71.00
VONTOBEL FIN PRO 13.700 3/22/2013 EUR 42.16
VONTOBEL FIN PRO 14.000 3/22/2013 EUR 63.30
VONTOBEL FIN PRO 14.500 3/22/2013 EUR 50.88
VONTOBEL FIN PRO 15.250 3/22/2013 EUR 40.58
VONTOBEL FIN PRO 16.850 3/22/2013 EUR 39.28
VONTOBEL FIN PRO 17.450 12/31/2012 EUR 56.96
VONTOBEL FIN PRO 17.100 12/31/2012 EUR 50.44
VONTOBEL FIN PRO 17.050 12/31/2012 EUR 54.28
VONTOBEL FIN PRO 16.950 12/31/2012 EUR 56.32
VONTOBEL FIN PRO 16.850 12/31/2012 EUR 60.40
VONTOBEL FIN PRO 16.700 12/31/2012 EUR 71.48
VONTOBEL FIN PRO 16.550 12/31/2012 EUR 73.86
VONTOBEL FIN PRO 16.450 12/31/2012 EUR 73.60
VONTOBEL FIN PRO 16.350 12/31/2012 EUR 57.44
VONTOBEL FIN PRO 16.150 12/31/2012 EUR 63.18
VONTOBEL FIN PRO 16.100 12/31/2012 EUR 71.56
VONTOBEL FIN PRO 16.050 12/31/2012 EUR 72.06
VONTOBEL FIN PRO 15.900 12/31/2012 EUR 73.46
VONTOBEL FIN PRO 15.750 12/31/2012 EUR 74.18
VONTOBEL FIN PRO 15.250 12/31/2012 EUR 57.52
VONTOBEL FIN PRO 14.950 12/31/2012 EUR 74.14
VONTOBEL FIN PRO 14.700 12/31/2012 EUR 73.84
VONTOBEL FIN PRO 14.600 12/31/2012 EUR 72.78
VONTOBEL FIN PRO 14.600 12/31/2012 EUR 53.42
VONTOBEL FIN PRO 14.550 12/31/2012 EUR 73.38
VONTOBEL FIN PRO 14.500 12/31/2012 EUR 63.86
VONTOBEL FIN PRO 14.450 12/31/2012 EUR 53.02
VONTOBEL FIN PRO 14.350 12/31/2012 EUR 70.94
VONTOBEL FIN PRO 14.350 12/31/2012 EUR 71.90
VONTOBEL FIN PRO 14.300 12/31/2012 EUR 71.30
VONTOBEL FIN PRO 14.300 12/31/2012 EUR 48.14
VONTOBEL FIN PRO 14.100 12/31/2012 EUR 74.06
VONTOBEL FIN PRO 14.000 12/31/2012 EUR 70.76
VONTOBEL FIN PRO 13.600 12/31/2012 EUR 72.66
VONTOBEL FIN PRO 13.550 12/31/2012 EUR 57.82
VONTOBEL FIN PRO 13.500 12/31/2012 EUR 61.24
VONTOBEL FIN PRO 13.150 12/31/2012 EUR 70.92
VONTOBEL FIN PRO 13.050 12/31/2012 EUR 67.64
VONTOBEL FIN PRO 12.900 12/31/2012 EUR 50.58
VONTOBEL FIN PRO 12.800 12/31/2012 EUR 46.66
VONTOBEL FIN PRO 12.650 12/31/2012 EUR 56.42
VONTOBEL FIN PRO 12.650 12/31/2012 EUR 73.70
VONTOBEL FIN PRO 12.550 12/31/2012 EUR 73.98
VONTOBEL FIN PRO 12.250 12/31/2012 EUR 68.20
VONTOBEL FIN PRO 12.000 12/31/2012 EUR 61.78
VONTOBEL FIN PRO 11.950 12/31/2012 EUR 72.42
VONTOBEL FIN PRO 11.950 12/31/2012 EUR 56.12
VONTOBEL FIN PRO 11.950 12/31/2012 EUR 49.92
VONTOBEL FIN PRO 11.900 12/31/2012 EUR 72.76
VONTOBEL FIN PRO 11.850 12/31/2012 EUR 68.54
VONTOBEL FIN PRO 11.750 12/31/2012 EUR 55.44
VONTOBEL FIN PRO 11.700 12/31/2012 EUR 61.98
VONTOBEL FIN PRO 11.600 12/31/2012 EUR 74.12
VONTOBEL FIN PRO 11.450 12/31/2012 EUR 54.80
VONTOBEL FIN PRO 11.400 12/31/2012 EUR 58.20
VONTOBEL FIN PRO 11.150 12/31/2012 EUR 72.30
VONTOBEL FIN PRO 11.000 12/31/2012 EUR 70.90
VONTOBEL FIN PRO 11.000 12/31/2012 EUR 70.64
VONTOBEL FIN PRO 10.900 12/31/2012 EUR 66.40
VONTOBEL FIN PRO 10.550 12/31/2012 EUR 58.50
VONTOBEL FIN PRO 10.550 12/31/2012 EUR 58.28
VONTOBEL FIN PRO 10.500 12/31/2012 EUR 41.50
VONTOBEL FIN PRO 10.050 12/31/2012 EUR 63.46
VONTOBEL FIN PRO 9.950 12/31/2012 EUR 52.92
VONTOBEL FIN PRO 9.950 12/31/2012 EUR 61.94
VONTOBEL FIN PRO 9.900 12/31/2012 EUR 72.76
VONTOBEL FIN PRO 9.650 12/31/2012 EUR 70.46
VONTOBEL FIN PRO 9.600 12/31/2012 EUR 72.14
VONTOBEL FIN PRO 9.600 12/31/2012 EUR 71.92
VONTOBEL FIN PRO 9.500 12/31/2012 EUR 59.22
VONTOBEL FIN PRO 9.400 12/31/2012 EUR 73.08
VONTOBEL FIN PRO 9.400 12/31/2012 EUR 54.40
VONTOBEL FIN PRO 9.350 12/31/2012 EUR 72.40
VONTOBEL FIN PRO 9.250 12/31/2012 EUR 41.18
VONTOBEL FIN PRO 9.150 12/31/2012 EUR 73.58
VONTOBEL FIN PRO 9.050 12/31/2012 EUR 73.74
VONTOBEL FIN PRO 8.650 12/31/2012 EUR 66.36
VONTOBEL FIN PRO 18.500 3/22/2013 EUR 38.32
VONTOBEL FIN PRO 20.900 3/22/2013 EUR 72.12
VONTOBEL FIN PRO 21.750 3/22/2013 EUR 73.52
VONTOBEL FIN PRO 8.200 12/31/2012 EUR 65.04
VONTOBEL FIN PRO 7.950 12/31/2012 EUR 52.66
VONTOBEL FIN PRO 19.700 12/31/2012 EUR 62.56
VONTOBEL FIN PRO 23.600 3/22/2013 EUR 70.72
VONTOBEL FIN PRO 4.000 6/28/2013 EUR 44.06
VONTOBEL FIN PRO 6.000 6/28/2013 EUR 63.20
VONTOBEL FIN PRO 8.000 6/28/2013 EUR 71.76
VONTOBEL FIN PRO 7.700 12/31/2012 EUR 67.42
VONTOBEL FIN PRO 7.400 12/31/2012 EUR 55.46
VONTOBEL FIN PRO 9.550 6/28/2013 EUR 74.90
VONTOBEL FIN PRO 7.250 12/31/2012 EUR 53.62
VONTOBEL FIN PRO 13.050 6/28/2013 EUR 72.48
VONTOBEL FIN PRO 7.389 11/25/2013 EUR 44.60
VONTOBEL FIN PRO 5.100 4/14/2014 EUR 32.80
VONTOBEL FIN PRO 18.200 12/31/2012 EUR 72.38
VONTOBEL FIN PRO 18.200 12/31/2012 EUR 73.86
VONTOBEL FIN PRO 18.850 12/31/2012 EUR 50.70
VONTOBEL FIN PRO 18.850 12/31/2012 EUR 63.10
VONTOBEL FIN PRO 18.900 12/31/2012 EUR 51.46
VONTOBEL FIN PRO 18.950 12/31/2012 EUR 68.80
VONTOBEL FIN PRO 19.300 12/31/2012 EUR 66.04
VONTOBEL FIN PRO 20.000 12/31/2012 EUR 69.94
VONTOBEL FIN PRO 20.850 12/31/2012 EUR 72.94
VONTOBEL FIN PRO 21.150 12/31/2012 EUR 68.12
VONTOBEL FIN PRO 21.200 12/31/2012 EUR 54.82
VONTOBEL FIN PRO 21.200 12/31/2012 EUR 74.18
VONTOBEL FIN PRO 22.250 12/31/2012 EUR 66.40
VONTOBEL FIN PRO 22.700 12/31/2012 EUR 66.06
VONTOBEL FIN PRO 24.700 12/31/2012 EUR 43.38
VONTOBEL FIN PRO 24.900 12/31/2012 EUR 51.50
VONTOBEL FIN PRO 26.050 12/31/2012 EUR 69.82
VONTOBEL FIN PRO 27.600 12/31/2012 EUR 40.62
VONTOBEL FIN PRO 28.250 12/31/2012 EUR 38.08
VONTOBEL FIN PRO 11.000 2/1/2013 EUR 55.10
VONTOBEL FIN PRO 13.650 3/1/2013 EUR 35.30
VONTOBEL FIN PRO 10.100 3/8/2013 EUR 74.60
VONTOBEL FIN PRO 5.650 3/22/2013 EUR 68.18
VONTOBEL FIN PRO 7.500 3/22/2013 EUR 73.88
VONTOBEL FIN PRO 8.550 3/22/2013 EUR 61.34
VONTOBEL FIN PRO 8.850 3/22/2013 EUR 73.64
VONTOBEL FIN PRO 9.200 3/22/2013 EUR 65.12
VONTOBEL FIN PRO 9.950 3/22/2013 EUR 70.06
VONTOBEL FIN PRO 10.150 3/22/2013 EUR 59.84
VONTOBEL FIN PRO 18.050 12/31/2012 EUR 64.74
VONTOBEL FIN PRO 17.650 12/31/2012 EUR 73.18
VONTOBEL FIN PRO 10.300 3/22/2013 EUR 70.72
VONTOBEL FIN PRO 10.350 3/22/2013 EUR 73.54
VONTOBEL FIN PRO 10.750 3/22/2013 EUR 46.30
WGZ BANK 8.000 12/28/2012 EUR 59.08
WGZ BANK 8.000 12/21/2012 EUR 66.08
WGZ BANK 5.000 12/28/2012 EUR 73.18
WGZ BANK 6.000 12/28/2012 EUR 67.75
WGZ BANK 7.000 12/28/2012 EUR 63.10
WGZ BANK 6.000 12/21/2012 EUR 74.00
WGZ BANK 7.000 12/21/2012 EUR 68.47
GUERNSEY
--------
BCV GUERNSEY 8.020 3/1/2013 EUR 56.54
BKB FINANCE 10.950 5/10/2013 CHF 62.57
BKB FINANCE 10.150 9/11/2013 CHF 73.89
BKB FINANCE 13.200 1/31/2013 CHF 50.08
BKB FINANCE 9.450 7/3/2013 CHF 68.52
BKB FINANCE 11.500 3/20/2013 CHF 59.30
BKB FINANCE 8.350 1/14/2013 CHF 54.15
EFG INTL FIN GUR 14.500 11/13/2012 EUR 73.04
EFG INTL FIN GUR 17.000 11/13/2012 EUR 64.12
EFG INTL FIN GUR 12.830 11/19/2012 CHF 70.07
EFG INTL FIN GUR 8.000 11/20/2012 CHF 62.03
EFG INTL FIN GUR 8.300 11/20/2012 CHF 64.99
EFG INTL FIN GUR 11.500 11/20/2012 EUR 55.05
EFG INTL FIN GUR 14.800 11/20/2012 EUR 65.84
EFG INTL FIN GUR 9.250 11/27/2012 CHF 68.70
EFG INTL FIN GUR 11.250 11/27/2012 CHF 64.89
EFG INTL FIN GUR 14.500 11/27/2012 CHF 31.64
EFG INTL FIN GUR 16.000 11/27/2012 EUR 59.21
EFG INTL FIN GUR 9.750 12/3/2012 CHF 72.96
EFG INTL FIN GUR 13.750 12/6/2012 CHF 35.12
EFG INTL FIN GUR 8.500 12/14/2012 CHF 58.17
EFG INTL FIN GUR 14.250 12/14/2012 EUR 66.29
EFG INTL FIN GUR 17.500 12/14/2012 EUR 62.97
EFG INTL FIN GUR 9.300 12/21/2012 CHF 64.50
EFG INTL FIN GUR 10.900 12/21/2012 CHF 64.73
EFG INTL FIN GUR 12.600 12/21/2012 CHF 64.81
EFG INTL FIN GUR 8.830 12/28/2012 USD 57.56
EFG INTL FIN GUR 10.000 1/9/2013 EUR 52.73
EFG INTL FIN GUR 9.000 1/15/2013 CHF 27.36
EFG INTL FIN GUR 10.250 1/15/2013 CHF 23.41
EFG INTL FIN GUR 11.250 1/15/2013 GBP 73.41
EFG INTL FIN GUR 12.500 1/15/2013 CHF 28.91
EFG INTL FIN GUR 13.000 1/15/2013 CHF 74.41
EFG INTL FIN GUR 16.500 1/18/2013 CHF 50.63
EFG INTL FIN GUR 5.800 1/23/2013 CHF 69.35
EFG INTL FIN GUR 19.050 2/20/2013 USD 74.67
EFG INTL FIN GUR 15.000 3/1/2013 CHF 71.34
EFG INTL FIN GUR 10.000 3/6/2013 USD 71.83
EFG INTL FIN GUR 12.250 12/27/2012 GBP 67.82
EFG INTL FIN GUR 8.000 4/2/2013 CHF 63.34
EFG INTL FIN GUR 16.000 4/4/2013 CHF 23.40
EFG INTL FIN GUR 7.530 4/16/2013 EUR 49.58
EFG INTL FIN GUR 7.000 4/19/2013 EUR 55.27
EFG INTL FIN GUR 12.000 4/26/2013 CHF 66.95
EFG INTL FIN GUR 9.500 4/30/2013 EUR 28.64
EFG INTL FIN GUR 14.200 6/7/2013 EUR 71.88
EFG INTL FIN GUR 6.500 8/27/2013 CHF 51.39
EFG INTL FIN GUR 8.400 9/30/2013 CHF 63.25
EFG INTL FIN GUR 19.000 10/3/2013 GBP 74.39
EFG INTL FIN GUR 8.160 4/25/2014 EUR 71.56
EFG INTL FIN GUR 5.850 10/14/2014 CHF 57.06
EFG INTL FIN GUR 6.000 11/12/2012 CHF 56.98
EFG INTL FIN GUR 6.000 11/12/2012 EUR 57.81
EFG INTL FIN GUR 10.500 11/13/2012 CHF 65.60
EFG INTL FIN GUR 10.500 11/13/2012 CHF 65.60
EFG INTL FIN GUR 12.750 11/13/2012 CHF 22.70
EFG INTL FIN GUR 12.750 11/13/2012 CHF 71.49
EFG INTL FIN GUR 13.000 11/13/2012 CHF 22.91
EFG INTL FIN GUR 13.000 11/13/2012 CHF 74.82
EFG INTL FIN GUR 14.000 11/13/2012 USD 23.41
EFG INTL FIN GUR 10.750 3/19/2013 USD 71.27
ZURCHER KANT FIN 9.250 11/9/2012 CHF 62.81
ZURCHER KANT FIN 9.250 11/9/2012 CHF 54.03
ZURCHER KANT FIN 12.670 12/28/2012 CHF 70.24
ZURCHER KANT FIN 11.500 1/24/2013 CHF 59.11
ZURCHER KANT FIN 17.000 2/22/2013 EUR 59.39
ZURCHER KANT FIN 10.128 3/7/2013 CHF 64.97
ZURCHER KANT FIN 13.575 4/10/2013 CHF 74.72
ZURCHER KANT FIN 7.340 4/16/2013 CHF 70.68
ZURCHER KANT FIN 12.500 7/5/2013 CHF 70.56
ZURCHER KANT FIN 10.200 8/23/2013 CHF 67.39
ZURCHER KANT FIN 9.000 9/11/2013 CHF 69.23
ICELAND
-------
KAUPTHING 0.800 2/15/2011 EUR 26.50
LUXEMBOURG
----------
ARCELORMITTAL 7.250 4/1/2014 EUR 21.66
NETHERLANDS
-----------
BLT FINANCE BV 12.000 2/10/2015 USD 24.88
EM.TV FINANCE BV 5.250 5/8/2013 EUR 5.89
KPNQWEST NV 10.000 3/15/2012 EUR 0.13
LEHMAN BROS TSY 7.500 9/13/2009 CHF 22.63
LEHMAN BROS TSY 6.600 2/22/2012 EUR 22.63
LEHMAN BROS TSY 7.000 2/15/2012 EUR 22.63
LEHMAN BROS TSY 6.000 2/14/2012 EUR 22.63
LEHMAN BROS TSY 2.500 12/15/2011 GBP 22.63
LEHMAN BROS TSY 12.000 7/4/2011 EUR 22.63
LEHMAN BROS TSY 11.000 7/4/2011 CHF 22.63
LEHMAN BROS TSY 11.000 7/4/2011 USD 22.63
LEHMAN BROS TSY 4.000 1/4/2011 USD 22.63
LEHMAN BROS TSY 8.000 12/31/2010 USD 22.63
LEHMAN BROS TSY 9.300 12/21/2010 EUR 22.63
LEHMAN BROS TSY 9.300 12/21/2010 EUR 22.63
LEHMAN BROS TSY 14.900 11/16/2010 EUR 22.63
LEHMAN BROS TSY 4.000 10/12/2010 USD 22.63
LEHMAN BROS TSY 10.500 8/9/2010 EUR 22.63
LEHMAN BROS TSY 6.000 7/28/2010 EUR 22.63
LEHMAN BROS TSY 6.000 7/28/2010 EUR 22.63
LEHMAN BROS TSY 4.000 5/30/2010 USD 22.63
LEHMAN BROS TSY 11.750 3/1/2010 EUR 22.63
LEHMAN BROS TSY 7.000 2/15/2010 CHF 22.63
LEHMAN BROS TSY 1.750 2/7/2010 EUR 22.63
LEHMAN BROS TSY 8.800 12/27/2009 EUR 22.63
LEHMAN BROS TSY 16.800 8/21/2009 USD 22.63
LEHMAN BROS TSY 8.000 8/3/2009 USD 22.63
LEHMAN BROS TSY 4.500 8/2/2009 USD 22.63
LEHMAN BROS TSY 8.500 7/6/2009 CHF 22.63
LEHMAN BROS TSY 11.000 6/29/2009 EUR 22.63
LEHMAN BROS TSY 10.000 6/17/2009 USD 22.63
LEHMAN BROS TSY 5.750 6/15/2009 CHF 22.63
LEHMAN BROS TSY 5.500 6/15/2009 CHF 22.63
LEHMAN BROS TSY 9.000 6/13/2009 USD 22.63
LEHMAN BROS TSY 15.000 6/4/2009 CHF 22.63
LEHMAN BROS TSY 17.000 6/2/2009 USD 22.63
LEHMAN BROS TSY 13.500 6/2/2009 USD 22.63
LEHMAN BROS TSY 10.000 5/22/2009 USD 22.63
LEHMAN BROS TSY 8.000 5/22/2009 USD 22.63
LEHMAN BROS TSY 8.000 5/22/2009 USD 22.63
LEHMAN BROS TSY 16.200 5/14/2009 USD 22.63
LEHMAN BROS TSY 4.000 4/24/2009 USD 22.63
LEHMAN BROS TSY 3.850 4/24/2009 USD 22.63
LEHMAN BROS TSY 7.000 4/14/2009 EUR 22.63
LEHMAN BROS TSY 9.000 3/17/2009 GBP 22.63
LEHMAN BROS TSY 13.000 2/16/2009 CHF 22.63
LEHMAN BROS TSY 11.000 2/16/2009 CHF 22.63
LEHMAN BROS TSY 10.000 2/16/2009 CHF 22.63
LEHMAN BROS TSY 0.500 2/16/2009 EUR 22.63
LEHMAN BROS TSY 7.750 1/30/2009 EUR 22.63
LEHMAN BROS TSY 13.432 1/8/2009 ILS 22.63
LEHMAN BROS TSY 16.000 12/26/2008 USD 22.63
LEHMAN BROS TSY 7.000 11/28/2008 CHF 22.63
LEHMAN BROS TSY 10.442 11/22/2008 CHF 22.63
LEHMAN BROS TSY 14.100 11/12/2008 USD 22.63
LEHMAN BROS TSY 16.000 11/9/2008 USD 22.63
LEHMAN BROS TSY 13.150 10/30/2008 USD 22.63
LEHMAN BROS TSY 16.000 10/28/2008 USD 22.63
LEHMAN BROS TSY 7.500 10/24/2008 USD 22.63
LEHMAN BROS TSY 6.000 10/24/2008 EUR 22.63
LEHMAN BROS TSY 5.000 10/24/2008 CHF 22.63
LEHMAN BROS TSY 8.000 10/23/2008 USD 22.63
LEHMAN BROS TSY 10.000 10/22/2008 USD 22.63
LEHMAN BROS TSY 16.000 10/8/2008 CHF 22.63
LEHMAN BROS TSY 7.250 10/6/2008 EUR 22.63
LEHMAN BROS TSY 18.250 10/2/2008 USD 22.63
LEHMAN BROS TSY 7.375 9/20/2008 EUR 22.63
LEHMAN BROS TSY 23.300 9/16/2008 USD 22.63
LEHMAN BROS TSY 14.900 9/15/2008 EUR 22.63
LEHMAN BROS TSY 3.000 9/12/2036 JPY 5.50
LEHMAN BROS TSY 6.000 10/30/2012 USD 5.50
LEHMAN BROS TSY 2.500 8/23/2012 GBP 22.63
LEHMAN BROS TSY 13.000 7/25/2012 EUR 22.63
Q-CELLS INTERNAT 1.375 4/30/2012 EUR 26.88
Q-CELLS INTERNAT 5.750 5/26/2014 EUR 26.88
RENEWABLE CORP 6.500 6/4/2014 EUR 61.31
SACYR VALLEHERM 6.500 5/1/2016 EUR 51.72
SWEDEN
------
Rorvik Timber 6.000 6/30/2016 SEK 66.00
SWITZERLAND
-----------
BANK JULIUS BAER 8.700 8/5/2013 CHF 60.55
BANK JULIUS BAER 15.000 5/31/2013 USD 69.05
BANK JULIUS BAER 13.000 5/31/2013 USD 70.65
BANK JULIUS BAER 12.000 4/9/2013 CHF 56.05
BANK JULIUS BAER 10.750 3/13/2013 EUR 66.60
BANK JULIUS BAER 17.300 2/1/2013 EUR 54.65
BANK JULIUS BAER 9.700 12/20/2012 CHF 75.00
BANK JULIUS BAER 11.500 2/20/2013 CHF 47.15
BANK JULIUS BAER 12.200 12/5/2012 EUR 54.40
CLARIDEN LEU NAS 0.000 6/10/2014 CHF 62.19
CLARIDEN LEU NAS 0.000 6/10/2014 CHF 62.13
CLARIDEN LEU NAS 0.000 5/26/2014 CHF 65.30
CLARIDEN LEU NAS 0.000 5/13/2014 CHF 63.03
CLARIDEN LEU NAS 0.000 2/24/2014 CHF 55.39
CLARIDEN LEU NAS 0.000 2/11/2014 CHF 54.50
CLARIDEN LEU NAS 18.400 12/20/2013 EUR 74.64
CLARIDEN LEU NAS 0.000 11/26/2013 CHF 64.17
CLARIDEN LEU NAS 4.500 8/13/2014 CHF 48.74
CLARIDEN LEU NAS 16.500 9/23/2013 USD 57.03
CLARIDEN LEU NAS 0.000 9/23/2013 CHF 50.04
CLARIDEN LEU NAS 3.250 9/16/2013 CHF 49.05
CLARIDEN LEU NAS 7.500 11/13/2012 CHF 58.71
CLARIDEN LEU NAS 7.250 11/13/2012 CHF 74.60
CLARIDEN LEU NAS 10.250 11/12/2012 CHF 73.60
CLARIDEN LEU NAS 0.000 8/27/2014 CHF 55.45
CLARIDEN LEU NAS 0.000 9/10/2014 CHF 51.16
CLARIDEN LEU NAS 0.000 10/15/2014 CHF 57.48
CLARIDEN LEU NAS 5.250 8/6/2014 CHF 51.70
CLARIDEN LEU NAS 7.000 7/22/2013 CHF 72.18
CLARIDEN LEU NAS 10.000 6/10/2013 CHF 70.08
CLARIDEN LEU NAS 0.000 5/31/2013 CHF 55.87
CLARIDEN LEU NAS 6.500 4/26/2013 CHF 58.21
CLARIDEN LEU NAS 0.000 3/25/2013 CHF 59.57
CLARIDEN LEU NAS 0.000 3/18/2013 CHF 74.71
CLARIDEN LEU NAS 12.500 3/1/2013 USD 74.21
CLARIDEN LEU NAS 9.000 2/14/2013 CHF 66.37
CLARIDEN LEU NAS 11.500 2/13/2013 EUR 57.40
CLARIDEN LEU NAS 0.000 1/24/2013 CHF 66.96
CLARIDEN LEU NAS 8.750 1/15/2013 CHF 68.73
CLARIDEN LEU NAS 8.250 12/17/2012 CHF 61.30
CLARIDEN LEU NAS 0.000 12/17/2012 EUR 67.37
CLARIDEN LEU NAS 12.500 12/14/2012 EUR 72.83
CLARIDEN LEU NAS 0.000 12/14/2012 CHF 36.53
CLARIDEN LEU NAS 12.000 11/23/2012 CHF 47.83
CLARIDEN LEU NAS 8.000 11/20/2012 CHF 74.87
CLARIDEN LEU NAS 7.125 11/19/2012 CHF 58.17
CLARIDEN LEU NAS 7.250 11/16/2012 CHF 58.79
CREDIT SUISSE LD 8.900 3/25/2013 EUR 57.79
CREDIT SUISSE LD 10.500 9/9/2013 CHF 66.05
S-AIR GROUP 0.125 7/7/2005 CHF 10.63
SARASIN CI LTD 8.000 4/27/2015 CHF 68.67
SARASIN/GUERNSEY 13.600 2/17/2014 CHF 71.51
SARASIN/GUERNSEY 13.200 1/23/2013 EUR 72.52
SARASIN/GUERNSEY 15.200 12/12/2012 EUR 73.12
UBS AG 11.870 8/13/2013 USD 4.68
UBS AG 9.600 8/26/2013 USD 15.21
UBS AG 10.200 9/20/2013 EUR 61.15
UBS AG 12.900 9/20/2013 EUR 57.98
UBS AG 15.900 9/20/2013 EUR 55.99
UBS AG 17.000 9/27/2013 EUR 73.19
UBS AG 17.750 9/27/2013 EUR 73.50
UBS AG 18.500 9/27/2013 EUR 71.56
UBS AG 19.750 9/27/2013 EUR 74.84
UBS AG 20.000 9/27/2013 EUR 70.19
UBS AG 20.500 9/27/2013 EUR 74.87
UBS AG 20.500 9/27/2013 EUR 71.43
UBS AG 21.750 9/27/2013 EUR 72.53
UBS AG 22.000 9/27/2013 EUR 71.57
UBS AG 22.500 9/27/2013 EUR 70.55
UBS AG 22.750 9/27/2013 EUR 67.91
UBS AG 23.000 9/27/2013 EUR 72.72
UBS AG 23.250 9/27/2013 EUR 68.81
UBS AG 23.250 9/27/2013 EUR 68.35
UBS AG 24.000 9/27/2013 EUR 69.47
UBS AG 24.750 9/27/2013 EUR 65.71
UBS AG 8.060 10/3/2013 USD 19.75
UBS AG 13.570 11/21/2013 USD 16.25
UBS AG 6.980 11/27/2013 USD 34.85
UBS AG 17.000 1/3/2014 EUR 74.48
UBS AG 17.500 1/3/2014 EUR 73.41
UBS AG 18.250 1/3/2014 EUR 73.31
UBS AG 18.250 1/3/2014 EUR 74.28
UBS AG 19.500 1/3/2014 EUR 73.10
UBS AG 20.000 1/3/2014 EUR 74.53
UBS AG 20.500 1/3/2014 EUR 71.30
UBS AG 20.750 1/3/2014 EUR 71.59
UBS AG 21.000 1/3/2014 EUR 72.44
UBS AG 22.250 1/3/2014 EUR 74.19
UBS AG 23.000 1/3/2014 EUR 71.55
UBS AG 23.250 1/3/2014 EUR 70.29
UBS AG 23.250 1/3/2014 EUR 70.57
UBS AG 24.000 1/3/2014 EUR 72.95
UBS AG 24.250 1/3/2014 EUR 68.40
UBS AG 24.250 1/3/2014 EUR 70.18
UBS AG 6.440 5/28/2014 USD 51.67
UBS AG 3.870 6/17/2014 USD 38.08
UBS AG 6.040 8/29/2014 USD 35.22
UBS AG 7.780 8/29/2014 USD 20.85
UBS AG 11.260 11/12/2012 EUR 47.13
UBS AG 11.660 11/12/2012 EUR 34.35
UBS AG 13.120 11/12/2012 EUR 68.36
UBS AG 13.560 11/12/2012 EUR 36.51
UBS AG 13.600 11/12/2012 EUR 56.96
UBS AG 13.000 11/23/2012 USD 62.55
UBS AG 8.150 12/21/2012 EUR 72.14
UBS AG 8.250 12/21/2012 EUR 74.88
UBS AG 8.270 12/21/2012 EUR 74.19
UBS AG 8.990 12/21/2012 EUR 72.49
UBS AG 9.000 12/21/2012 EUR 69.13
UBS AG 9.150 12/21/2012 EUR 71.84
UBS AG 9.450 12/21/2012 EUR 74.42
UBS AG 9.730 12/21/2012 EUR 70.24
UBS AG 9.890 12/21/2012 EUR 66.37
UBS AG 10.060 12/21/2012 EUR 72.98
UBS AG 10.060 12/21/2012 EUR 69.64
UBS AG 10.160 12/21/2012 EUR 73.41
UBS AG 10.490 12/21/2012 EUR 68.12
UBS AG 10.690 12/21/2012 EUR 71.60
UBS AG 10.810 12/21/2012 EUR 63.85
UBS AG 11.000 12/21/2012 EUR 67.59
UBS AG 11.260 12/21/2012 EUR 66.14
UBS AG 11.270 12/21/2012 EUR 70.63
UBS AG 11.330 12/21/2012 EUR 70.28
UBS AG 11.770 12/21/2012 EUR 61.53
UBS AG 11.970 12/21/2012 EUR 65.67
UBS AG 11.980 12/21/2012 EUR 69.02
UBS AG 12.020 12/21/2012 EUR 64.27
UBS AG 12.200 12/21/2012 EUR 56.09
UBS AG 12.400 12/21/2012 EUR 68.07
UBS AG 12.760 12/21/2012 EUR 59.39
UBS AG 12.800 12/21/2012 EUR 62.51
UBS AG 12.970 12/21/2012 EUR 63.87
UBS AG 13.320 12/21/2012 EUR 66.64
UBS AG 13.560 12/21/2012 EUR 65.71
UBS AG 13.570 12/21/2012 EUR 60.85
UBS AG 13.770 12/21/2012 EUR 57.41
UBS AG 13.980 12/21/2012 EUR 62.18
UBS AG 14.350 12/21/2012 EUR 59.29
UBS AG 14.690 12/21/2012 EUR 64.44
UBS AG 14.740 12/21/2012 EUR 63.53
UBS AG 14.810 12/21/2012 EUR 55.58
UBS AG 15.000 12/21/2012 EUR 60.59
UBS AG 15.130 12/21/2012 EUR 57.81
UBS AG 15.860 12/21/2012 EUR 53.88
UBS AG 15.920 12/21/2012 EUR 56.41
UBS AG 15.930 12/21/2012 EUR 61.51
UBS AG 16.030 12/21/2012 EUR 59.10
UBS AG 16.600 12/21/2012 EUR 50.18
UBS AG 16.710 12/21/2012 EUR 55.09
UBS AG 16.930 12/21/2012 EUR 52.30
UBS AG 17.070 12/21/2012 EUR 57.69
UBS AG 17.500 12/21/2012 EUR 53.84
UBS AG 18.000 12/21/2012 EUR 50.83
UBS AG 19.090 12/21/2012 EUR 51.52
UBS AG 10.770 1/2/2013 USD 38.33
UBS AG 13.030 1/4/2013 EUR 73.40
UBS AG 13.630 1/4/2013 EUR 71.63
UBS AG 14.230 1/4/2013 EUR 69.95
UBS AG 14.820 1/4/2013 EUR 68.36
UBS AG 15.460 1/4/2013 EUR 74.82
UBS AG 15.990 1/4/2013 EUR 65.39
UBS AG 16.500 1/4/2013 EUR 73.32
UBS AG 17.000 1/4/2013 EUR 73.98
UBS AG 17.150 1/4/2013 EUR 62.69
UBS AG 17.180 1/4/2013 EUR 74.58
UBS AG 18.000 1/4/2013 EUR 73.54
UBS AG 18.300 1/4/2013 EUR 60.23
UBS AG 19.440 1/4/2013 EUR 57.99
UBS AG 19.750 1/4/2013 EUR 69.92
UBS AG 20.500 1/4/2013 EUR 70.21
UBS AG 20.570 1/4/2013 EUR 55.94
UBS AG 21.700 1/4/2013 EUR 54.05
UBS AG 21.750 1/4/2013 EUR 69.65
UBS AG 23.750 1/4/2013 EUR 66.55
UBS AG 11.020 1/25/2013 EUR 67.05
UBS AG 12.010 1/25/2013 EUR 65.34
UBS AG 14.070 1/25/2013 EUR 62.22
UBS AG 16.200 1/25/2013 EUR 74.54
UBS AG 8.620 2/1/2013 USD 14.04
UBS AG 8.980 2/22/2013 EUR 72.86
UBS AG 10.590 2/22/2013 EUR 69.90
UBS AG 10.960 2/22/2013 EUR 67.35
UBS AG 13.070 2/22/2013 EUR 63.96
UBS AG 13.660 2/22/2013 EUR 61.23
UBS AG 13.940 2/22/2013 EUR 73.02
UBS AG 15.800 2/22/2013 EUR 67.24
UBS AG 8.480 3/7/2013 CHF 58.00
UBS AG 10.000 3/7/2013 USD 72.30
UBS AG 12.250 3/7/2013 CHF 59.20
UBS AG 9.000 3/22/2013 USD 11.16
UBS AG 9.850 3/22/2013 USD 19.75
UBS AG 16.500 4/2/2013 EUR 72.16
UBS AG 17.250 4/2/2013 EUR 72.45
UBS AG 18.000 4/2/2013 EUR 73.44
UBS AG 19.750 4/2/2013 EUR 69.63
UBS AG 21.250 4/2/2013 EUR 69.05
UBS AG 21.500 4/2/2013 EUR 73.98
UBS AG 21.500 4/2/2013 EUR 73.88
UBS AG 22.250 4/2/2013 EUR 67.19
UBS AG 22.250 4/2/2013 EUR 69.43
UBS AG 24.250 4/2/2013 EUR 65.24
UBS AG 24.750 4/2/2013 EUR 68.24
UBS AG 10.860 4/4/2013 USD 37.21
UBS AG 9.650 4/11/2013 USD 27.17
UBS AG 9.930 4/11/2013 USD 24.77
UBS AG 11.250 4/11/2013 USD 24.39
UBS AG 10.170 4/26/2013 EUR 67.84
UBS AG 10.970 4/26/2013 EUR 66.50
UBS AG 12.610 4/26/2013 EUR 64.06
UBS AG 7.900 4/30/2013 USD 33.75
UBS AG 9.830 5/13/2013 USD 30.07
UBS AG 8.000 5/24/2013 USD 63.90
UBS AG 11.670 5/31/2013 USD 35.12
UBS AG 12.780 6/7/2013 CHF 62.60
UBS AG 16.410 6/7/2013 CHF 64.70
UBS AG 9.330 6/14/2013 USD 22.00
UBS AG 11.060 6/14/2013 USD 28.17
UBS AG 6.770 6/21/2013 USD 10.43
UBS AG 7.120 6/26/2013 USD 29.83
UBS AG 15.250 6/28/2013 EUR 74.98
UBS AG 17.000 6/28/2013 EUR 74.05
UBS AG 17.250 6/28/2013 EUR 72.59
UBS AG 19.250 6/28/2013 EUR 70.54
UBS AG 19.500 6/28/2013 EUR 70.28
UBS AG 20.250 6/28/2013 EUR 74.82
UBS AG 20.500 6/28/2013 EUR 70.91
UBS AG 21.000 6/28/2013 EUR 68.62
UBS AG 22.000 6/28/2013 EUR 71.86
UBS AG 22.500 6/28/2013 EUR 66.83
UBS AG 23.000 6/28/2013 EUR 67.15
UBS AG 23.500 6/28/2013 EUR 71.72
UBS AG 24.000 6/28/2013 EUR 68.94
UBS AG 24.500 6/28/2013 EUR 67.97
UBS AG 11.450 7/1/2013 USD 27.96
UBS AG 6.100 7/24/2013 USD 30.07
UBS AG 8.640 8/1/2013 USD 27.87
UBS AG 13.120 8/5/2013 USD 4.62
UBS AG 0.500 4/27/2015 CHF 52.50
UBS AG 6.070 11/12/2012 EUR 65.82
UBS AG 8.370 11/12/2012 EUR 59.26
UBS AG 8.590 11/12/2012 EUR 53.53
UBS AG 9.020 11/12/2012 EUR 43.76
UBS AG 9.650 11/12/2012 EUR 37.64
UBS AG 10.020 11/12/2012 EUR 71.72
UBS AG 10.930 11/12/2012 EUR 64.23
BARCLAYS BK PLC 11.000 6/28/2013 EUR 43.13
BARCLAYS BK PLC 11.000 6/28/2013 EUR 74.83
BARCLAYS BK PLC 10.750 3/22/2013 EUR 41.06
BARCLAYS BK PLC 10.000 3/22/2013 EUR 42.44
BARCLAYS BK PLC 6.000 1/2/2013 EUR 50.37
BARCLAYS BK PLC 8.000 6/28/2013 EUR 47.66
ESSAR ENERGY 4.250 2/1/2016 USD 72.62
MAX PETROLEUM 6.750 9/8/2013 USD 40.36
*********
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., Washington, D.C., 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 2013. 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$775 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 215-945-7000 or Nina Novak at
202-241-8200.
* * * End of Transmission * * *