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Levels for Aurora Foods bank debt softened after the company released its earnings report and Moody's Investors Service subsequently downgraded the credit. The bank debt has slipped from the 92-93 context to the 91-92 1/2 range as the company clocked in a $483.2 million loss for 2002. No trades could be confirmed. Low cash flow run rate levels, limited liquidity, and leverage levels around eight times concern the rating agency.

Royal Bank of Scotland has hired an asset-backed securities analyst for its financial markets division. Nick Ventham, formerly a manager of ABS credit at Abbey National, joined RBS last month. Ventham, based in London, says he reports to Mark Pryor, head of capital markets credit. At Abbey, Ventham reported to Peter Laurent, senior manager in credit. Ventham will undertake credit analysis on buy-side purchases. He will not be replaced at Abbey National, because--as has been widely publicized--the bank is selling off its fixed-income assets.

A consortium of nine Italian banks is launching a securitization of non-performing loans, the special purpose vehicle of which will be backed by Italian treasury bonds. In the event none of the loans are recovered, the treasury bonds will be sold to pay bondholders. Accordingly, the deal is double-A rated, the same as Italy's sovereign rating. The E413.5 million deal, Mutina, should close next month.

J.P. Morgan Securities has named managing directors Andy Brindle and Bertrand Des Pallières global co-heads of structured credit, expanding their existing titles. Both officially replace Romita Shetty, who resigned from the post in December and is still at the firm evaluating whether she will accept another role or leave.

The recent rally in the bonds of Nextel Communications has prompted high-yield market participants to say that the wireless company is in a position to access the debt markets to refinance some of its high-coupon preferred securities.

Dan Ward has left Lehman Brothers, where he was an analyst covering the transportation sector, including airlines, rails and defense, according to a Lehman official. Ward also covered autos, which is often classed as "manufacturing" and followed by a different analyst. He could not be reached. The Lehman official says he left "to pursue other opportunities," but declined to be more specific.

RCN Corp. is believed to be going after an amendment that will allow the company to use cash to buy back its bonds, and that idea is not sitting well with term loan investors who would rather the cash be directed to them. "This is a very controversial amendment," noted one buysider. Jim Downing, an RCN investor relations spokesman, declined to comment on the amendment and the specifics could not be ascertained. Votes are due this Thursday and the company must receive 51% lender approval for the amendment.

Valuations on senior loan funds have moved up significantly in the last few months, as demand for the long-troubled funds increases. "People have been exposed to the story and are asking when [interest] rates rise, where can I take advantage," explained Jon Maier, a director in global equity research at UBS Warburg. UBS began coverage of some of the funds last year, when prime rate funds were trading at a large discount, reflecting both the market interpretation of the risks associated with the funds as well as the average price of their bank loan assets (LMW, 12/2).

The roadshow for the £1.2 billion securitization of fees payable to Metronet, the consortium responsible for maintenance of the London Underground, will kick off next week, says a Metronet spokesman. The deal had been slated to come to market last year, however, political opposition to the Public Private Partnership, caused it to be delayed. The deal is being lead-managed by Deutsche Bank, Royal Bank of Scotland and UBS Warburg.

Microcell Telecommunications' bank debt climbed from the low 70s into the 76-80 range last week with a piece of the debt trading in the 77 context. Dealers said investors are anticipating a faster restructuring than anticipated after the company filed its plan of reorganization last month. The bank debt has rebounded significantly over the last three months. In November, the paper climbed out of the 20s into the 35-40 range as lenders predicted a restructuring that would be good for those holding onto the bank debt (LMW, 11/11).

Fitch Ratings is looking to hire analysts for its newly established Moscow office, which is set to open in about a month, says Paul Taylor, group managing director in London. The office will be headed by Natasha Page, managing director, and will eventually house 10 analysts. Taylor says the office will be staffed by a combination of new hires and internal transfers.