Are Rating Companies Now Too Tough on Junk?

Focuses on high-yield bonds and the paradox of investors loving them while rating companies call them junk. Increase in investor activity into the bonds issued by Dynegy Inc., Charter Communications Inc. and RCN Corp.; Performance of junk bonds in 2003, indicating they were popular among investors; Percentage of corporate-rating changes -- issued by McGraw Hill Cos.' Standard & Poor's, Moody's Corp.'s Moody's Investors Service and Fimilac SA's Fitch Ratings -- were cuts; Analysis of the financial condition of RCN, suggesting the company will need material improvements in its financial condition if it is to comply with all of its debt covenants.