S&P cuts Remington Outdoor

S&P said it lowered its corporate credit rating on Remington Outdoor Co. Inc. to D from CCC- and also lowered the issue-level rating on the company's term loan B due 2019 to D from CCC-.

In addition, S&P said it lowered its issue-level rating on the third-lien notes due 2020 to D from C.

Upon the completion of the company's restructuring, S&P said it plans to withdraw the issue-level ratings on this debt and reassess the corporate credit rating.

“We lowered the corporate credit rating to D because the interest payment on the company's term loan B was not made within the stated 5-day grace period, and we view this as a default. We consider the restructuring support agreement for substantially all of the company's funded debt obligations to be a general default and believe that Remington and its subsidiaries will fail to pay funded debt obligations subject to the restructuring support agreement as they come due,” S&P said in a news release.

“We expect the company will file for Chapter 11 bankruptcy in the coming weeks.”

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