One year later, in may 2002, the credit agencies downgraded worldcom debt to junk-bond status. The rationale behind the downgrade was that worldcom’s total debt of $30 billion was too high.12 Why were the agencies unconcerned with the debt level the previous year when worldcom increased its debt by 50 percent with the massive bond issue? The agencies initial seal of approval on the giant bond issue and the company downgrade one year later that was based on an issue that was known all along seems hard to believe.