Moody's assigns Heckler & Koch notes Caa1

Moody's Investors Service said it confirmed the Caa1 corporate family probability of default ratings of Heckler & Koch GmbH and assigned a definitive Caa1 rating to the currently outstanding €295 million senior secured notes.

The outlook was changed to negative.

Moody's said the action reflects the ongoing liquidity constraints of the company despite the recent bond issuance, which are due to the absence of sufficient committed long-term credit lines, the requirement from some banks to pledge cash in order to obtain performance guarantees as well as limited flexibility of the company to adjust its production to changing volumes.

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