Moody's drops Heckler

Moody's Investors Service said it downgraded the following ratings of Heckler & Koch GmbH: the corporate family rating to B3 from B2; the probability-of-default rating to B3 from B1; and the rating on the company's €120 million worth of senior unsecured notes to B3 from B2.

The ratings remain on review for possible downgrade.

According to the agency, the downgrade to B3 reflects (i) Heckler's more aggressive financial policy, evidenced by a recent dividend payout of around €16 million to its indirect shareholder Heckler & Koch Beteiligungs GmbH as well as (ii) the potential challenge the company faces to refinance €120 million worth of senior unsecured notes maturing in July 2011.

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