S&P downgrades Colt Defense

Standard & Poor's said it lowered the corporate credit rating on Colt Defense LLC to B- from B, along with the rating on its unsecured notes to B- from B, although the 4 recovery rating is unchanged.

The ratings also were removed from CreditWatch, where they were placed with negative implications in November.

The outlook is stable.

The company has been experiencing significantly lower revenues and earnings due to decreased demand for its M4 carbine from its main customer, the United States military and law enforcement customers, S&P said.

The company had planned to replace this demand with orders from international customers and new products, the agency said, but has had only limited success as a large order expected in 2010 was delayed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.