Moody’s Downgrades RJR Junk Bonds: RJR Nabisco...

Moody’s Downgrades RJR Junk Bonds: RJR Nabisco Inc.’s junk bonds, previously a stalwart in the volatile high-yield debt market, fell sharply after Moody’s Investors Service Inc. lowered its rating on $19.5 billion of debt issued by RJR and its units. It cited uncertainty about the company’s ability to repay huge debts incurred when the company was taken private in the biggest leveraged buyout in history. One type of RJR Nabisco Holdings Corp.’s senior debentures were lowered to B-3 from B-2. Analysts said some of RJR Nabisco’s junk bonds fell 10% in value.