Moody’s ups Heckler & Koch, notes to B3

Moody's Investors Service said it upgraded Heckler & Koch GmbH’s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

At the same time, the agency upgraded the rating on the €295 million senior secured notes due 2018 (of which €220 million are outstanding) to B3 from Caa1.

The outlook is stable.

"Today's upgrade reflects Heckler & Koch's successful securing of private financing to repay notes maturing in May 2018 worth €220 million. The proposed refinancing will significantly reduce the company's short-term liquidity risk, lower interest costs and could potentially lead to significant capital structure improvements," Jeanine Arnold, Moody's vice president, senior credit officer and lead analyst for Heckler & Koch, said in a news release.

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