ZURICH, Nov 26 (Reuters) - UBS could mark down

credit funds managed by its O'Connor hedge fund unit by over 10%

following the bankruptcy of U.S. auto parts supplier First

Brands, German business paper Handelsblatt reported on

Wednesday, citing sources.

UBS said earlier this month it was winding down investment

funds run by its hedge fund unit O'Connor, with the majority of

assets expected to be monetised by year-end.

UBS did not immediately reply to a Reuters request for

comment on the Handelsblatt story.