Moody's may cut Heckler

Moody's Investors Service said it placed the ratings of Heckler & Koch GmbH on review for possible downgrade, including the probability of default rating at B1, the corporate family rating at B2 and the senior unsecured regular bond/debenture at B2.

While Moody's said it acknowledges the continued solid operating performance of Heckler over recent quarters and its only moderately leverage capital structure, the rating review for possible downgrade is focused on the company's financial policy and refinancing strategy in light of the future liquidity needs linked with the looming partial refinancing requirement of €120 million senior notes due in July 2011, given the initiation of dividend payouts of around €13 million and an unrestricted cash position of around €19 million per end of June.

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