Moody's cuts Remington Arms

Moody's Investors Service said it downgraded the debt ratings of Remington Arms Co. Inc., reflecting the company's weakened financial position following profit erosion over the past several quarters.

Ratings downgraded include the senior implied rating to B2 from B1, the $200 million 10.5% senior unsecured notes due 2011 to B3 from B2, and the senior unsecured issuer rating to B3 from B2.

The outlook is negative.

Moody's said the downgrade and negative outlook reflect Remington's profit erosion since its leveraged recapitalization in fiscal 2003, which the company attributes to economic weakness and, more recently, to seasonal product mix shifts. Despite the sale of its Stren fishing line business for $44 million earlier this year, Remington has been unable to maintain credit measures appropriate for its prior rating category.

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