S&P lowers Remington Arms

Standard & Poor's said it lowered its ratings on Remington Arms Co. Inc., including lowering its corporate credit rating to CCC+ from B and senior unsecured debt rating to CCC- from CCC+, based on escalating raw material and utility costs, which have meaningfully affected profitability, debt leverage and liquidity.

The outlook is negative.

S&P said the rating action reflects the continuing negative effects from higher input prices, which have been only modestly offset by Remington Arms' price increases and the expectation that the pressure on profitability and, more importantly, liquidity will intensify.

Adding to the agency's concern about raw material costs, the sustainability of Remington Arms' pricing power remains highly uncertain and it is conceivable that new price increases could curtail consumer demand for firearms.

© 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.