Moody’s Investors Services placed Vista Outdoor Inc.’s ratings on review for downgrade following its “very weak” quarterly operating results. Moody’s said it is concerned about the uncertainty surrounding the company’s ability to improve its operating performance and credit metrics given Vista’s weak operating performance and revisions to its earnings and cash flow guidance.
“We were expecting soft operating performance, but not to this degree,” said Kevin Cassidy, senior credit officer, at Moody’s Investors Service.
Moody’s rating review will focus on Vista’s plan to improve its operating performance amid continuing weakness in the gun industry, as well as steps it can take to reduce its financial leverage. The review will also focus on Vista’s ability to comply with its debt covenants.
Ratings placed on review for downgrade:
- Corporate Family Rating at Ba3;
- Probability of Default Rating at Ba3-PD;
- $350 million senior unsecured notes at B2(LGD5);
Changed To Rating Under Review From Negative
Speculative Grade Liquidity Rating at SGL 2