Moody’s Lowers WorldCom Debt Rating

WorldCom Inc., with more than $30 billion in debt, had its senior unsecured debt ratings cut further to “junk” by Moody’s Investors Service after the second-biggest U.S. long-distance company said it will defer some interest payments.

Moody’s lowered the rating on WorldCom’s debt two notches to B1 from Ba2.

Moody’s cited WorldCom’s deferral of interest payments on certain preferred securities and debentures.

The downgrade affects all of WorldCom’s debt. The company’s ratings may be cut further, Moody’s said.

WorldCom shares fell 15 cents to $1.37 on Nasdaq.