S&P lifts Heckler & Koch

Standard & Poor's said it raised the corporate credit rating on Heckler & Koch GmbH to CCC from SD (selective default).

The outlook is negative.

The issue rating remains at D.

Heckler & Koch's recent repurchase of €45 million of its outstanding €295 million senior notes due 2018, at below par value, only resulted in an incremental improvement in credit metrics, which remain very highly leveraged, S&P said.

The agency said it now forecasts a 2015 adjusted debt-to-EBITDA ratio for the company of about 13x, compared to a previous estimate of about 15x, the agency said.

The company's revenue exposure is skewed to its military segment, which is constrained due to ongoing uncertainty regarding the granting of export licenses to allow Heckler & Koch to fulfill all of its existing orders, S&P said.

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