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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (63597)	5/10/2002 12:09:25 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

WorldCom Credit Rating to Junk at `Ba2' by Moody's (Update2) By Jennifer Ryan and Emma Moody quote.bloomberg.com New York, May 9 (Bloomberg) -- WorldCom Inc., the second- largest long-distance company, had its credit rating cut three levels to junk status, to ``Ba2'' from ``Baa2'' by Moody's Investors Service. The drop in the credit rating comes after the company's bonds lost more than half their value as long-distance profit slumps and the U.S. Securities and Exchange Commission began investigating loans to company officers, including former Chief Executive Bernard Ebbers. The rating change restricts WorldCom's borrow under a $2 billion financing package backed by customers' bills. WorldCom would have to pay back the $2 billion or change the agreement if Standard & Poor's also cuts it to junk. ``You don't know where (WorldCom bonds) are going to find a floor,'' said Mark Simenstad, who helps manage about $3 billion of high-yield assets at Aid Association for Lutherans, which owns WorldCom bonds.