NTL, the New York-based cable group, reacted angrily as Moody's downgraded its $20bn (€22bn) debt mountain - despite past warnings from the rating agency of further downgrades.

Moody's downgraded NTL's bonds two notches from B3 to Caa2. It is NTL's second downgrade this year following a one-notch fall in August. The downgrade was a sensitive one for NTL because many high-yield bond funds are unable to own bonds rated below B3. NTL's benchmark 2008 euro bond fell six points to 38 cents in the dollar.