S&P cuts Hunter Defense

Standard & Poor's said it lowered its corporate credit rating on Hunter Defense Technologies Inc. to CCC from CCC+. The outlook is developing.

At the same time, S&P lowered its issue-level rating on the first-lien term loan to B- from B and lowered the rating on the second-lien term loan to CC from CCC-. The recovery ratings remain unchanged at 1 on the first-lien debt, indicating expectations for substantial recovery (90%-100%), and 6 on the second-lien debt, indicating negligible recovery (0%-10%) in the event of a payment default.

"The downgrade reflects our concerns that the company may be unable to successfully refinance its $141 million first-lien term loan, which matures in less than six months (August 2014), and its $44 million second-lien term loan, which matures in less than 12 months (February 2015)," said S&P credit analyst Chris Mooney in a news release.

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