Moody's confirms Heckler & Koch; outlook negative

Moody's Investors Service said it confirmed Heckler & Koch GmbH's B1 corporate family rating as well as the B1 rating for the €120 million senior notes due 2011. Moody's also changed the outlook to negative from rating under review.

Moody's said the confirmation reflects the limited effects that the proposed PIK notes, due in 2013, are expected to have for Heckler & Koch's creditors within the bond group given the existing indenture.

The outlook change to negative reflects the recent weakening of Heckler & Koch's operating performance against Moody's expectations largely driven by a decline or delay in underlying orders and some uncertainty whether historical revenue and order levels can be restored over the next 12 to 18 months.

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