Remington, Vista downgraded corporate ratings amid soft market

By Daniel Terrill

A box full of Remington pistols on display in August 2017 at the Gunsite Academy. (Photo: Daniel Terrill/Guns.com)
Two of the largest gun companies in the U.S. have had their corporate credit ratings downgraded amid decreasing sales and soft market conditions throughout the year after the surprising political victory by President Trump.
Citing debt levels, S&P Global lowered ratings for Remington Outdoor Company to “negative” for its risk of defaulting on loans and Vista Outdoor to the much less severe “stable” financial condition.
S&P analysts say Remington is at “a heightened risk of a restructuring of some form over the next six to 12 months” because they don’t believe the company will rake in enough cash to cover fixed costs and repay $575 million in loans due in 2019.
So far this year, Remington’s sales have trailed last year’s by $177 million, putting the company in the red by $60.5 million, financial filings show. The company’s decrease has largely been a result of fewer people buying AR-style rifles. Poor sales aside, the corporate downgrade was due to the amounting debt.
Remington executives largely declined to respond to direct questions about debt during last week’s conference call with investors. “We are mindful of our debt maturities

Source: Guns.com