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Worldcom shares drop on downgrade rumours

But then you should never listen to rumours...
Written by Joey Gardiner, Contributor

But then you should never listen to rumours...

Shares in US telecoms giant Worldcom have continued to slump today as investors continue to be worried by rumours that its debt rating is about to be downgraded. This is despite a denial from ratings company Standard and Poor's that it was about to take such a step. Shares fell over eight per cent by mid-morning today, on top of a thirteen per cent fall yesterday. The long-distance carrier is now at a seven-year low and has lost over a third of its value since New Year. Its price plummeted quickly past the psychologically important ten dollar value, to stabilise at about $9.60. In addition to the negative rumours about its financial stability, Worldcom has also been hit this week by the struggles of fellow US telcos. On Monday Global Crossing filed for bankruptcy protection and yesterday Qwest posted lower than expected results.
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