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* Philip Morris Capital Corp Guarantor: support agreement from Philip Morris Companies Inc

* General Electric Capital Corp Rating: Aaa/AAA/AAA

French utility Suez braved the tempestuous conditions for credits this week with a Eu1bn seven year euro bond issued via its new GIE Suez Alliance entity, playing on its defensive qualities to offer some hope to the barren corporate market. The deal, led by Citigroup/SSSB, Deutsche Bank and Morgan Stanley, was a great success, coming flat to secondaries at 68bp over mid-swaps and drawing in over Eu1.7bn of orders.

Another hurdle was cleared yesterday (Thursday) on the slippery path to commercial and financial close for the London Underground Public-Private Partnership scheme. Stephen Byers, the UK's transport secretary, announced in the House of Commons late yesterday that the government would proceed with the PPP after being satisfied with initial reports from PricewaterhouseCoopers and a subsequent independent assessment by Ernst & Young that the PPP solution represented value for money against public sector alternatives.

Yokohama Finance (Europe) has been dropped as the arranger and as the dealer off Yokohama Finance (Cayman) ¥300 billion ($2.24 billion) subordinated guaranteed Euro-MTN programme. Nikko Salomon Smith Barney, already on the dealer panel, is the new arranger. The programme was signed on November 1 1995 and has $644.56 million outstanding off nine trades. The issuer has not traded since November 2000 when it closed a 10-year ¥1 billion note.

The first fresh loan mandate of the year for a Turkish financial institution is set to be awarded next week, assuming that the tough bargaining still under way this week is successfully concluded. Bankers expect that Türkiye Garanti Bankasi will be the first to award a mandate to tap the market. The bank plans to refinance its Eu350m facility signed last March. That deal paid a margin of 60bp over Euribor and was arranged by 18 strong bank group.

Forty-five percent of the volume in US dollar yesterday came from Germany issuers, in particular Landesbank Sachsen. It announced three deals for $10 million, $20 million and $40 million. All were led by Goldman Sachs and have terms of one year. The $20 million and the $40 million notes pay 1m $Libor, and the $10 million note pays 3m $Libor. Norddeutsche Landesbank was also active, announcing a $25 million 13-year deal. HypoVereinsbank acted as dealer, and the coupon is fixed at 6.26%. Abbey National Treasury Services did a $3.58 million three-year trade. Deutsche Bank self-led a $5 million seven-year issue, and Lehman Brothers self-led a $20 million three-year note. Lloyds TSB Bank went for a $6.1 million 10-year deal with Salomon Smith Barney as bookrunner. Salomon also led deals for Banque et Caisse d'Epargne de l'Etat Luxembourg ($7 million, five years), European Investment Bank ($20 million, 20 years) and Inter-American Development Bank ($50 million, seven years). Royal Bank of Scotland went for two deals, both for $10 million. They have terms of five years and two years. Bank of Scotland Treasury Services did a $70 million two-year deal. Lehman Brothers was the dealer and the note pays $Libor plus two basis points, and was issued at par.

BNP Paribas has arranged a £101.9m senior debt facility for the Allied Healthcare Group. The facility is divided into five tranches. Tranche 'A' is a £23.8m four year amortising term loan that pays a margin of 225bp over Libor. Tranche 'B' is a £12.5m five year amortising term loan that pays a margin of 275bp. Tranche 'C' is a £50m five year amortising term loan that carries a margin of 350bp. The deal includes a £5m four year revolver with a 225bp margin and a £10.6m six year mezzanine tranche that pays 350bp.

* Bank of Scotland Treasury Services plc Guarantor: Bank of Scotland

The ICI rights issue prompted jitters this week in the UK market, as investors speculated which company would be the next to announce a capital restructuring. Invensys, the controls and automation group, denied it was preparing a rights issue to reduce its £3bn debt burden. Analysts have long suspected that if Invensys is unable to make enough headway on its divestments programme, it may have to resort to a rights issue (see EuroWeek 713).

Globals n Fannie Mae

In an atmosphere of near panic, investors sought to reduce their exposure to credit this week and corporate spreads widened dramatically on any piece of negative news. DaimlerChrysler bonds widened by around 30bp after the company reduced its 2002 earnings target. The rest of the auto sector moved out in sympathy, with Ford bonds in particular encountering strong selling pressure. Ford's recent 6% 2005 bond widened to 264bp over mid-swaps, having been launched at 170bp over.