Moody's rates Heckler notes B1

Moody's Investors Service said it assigned a prospective B1 rating to Heckler & Koch GmbH's proposed issue of €115 million of senior notes due 2011. Moody's also assigned a prospective B1 senior implied and unsecured issuer rating.

The outlook is stable.

While pro forma adjusted total debt/EBITDAR is not expected to exceed 5x, financial leverage is viewed as high given Heckler's limited size and non-diversified business.

Moody's said Heckler's ratings are constrained by its high customer concentration, its lack of track record as operating as an independent company and its limited access to public markets.

More positively, the rating reflects the company's position as a leading small arms defense contractor with top market positions for the supply of assault rifles, fully automatic weapons and grenade launchers in NATO and NATO allied countries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.