Research Update: Hunter Defense Technologies Inc. Rating Lowered To 'B' On Lower Earnings, Liquidity Concerns; Outlook Negative Mar 13
- Language: English
- Published: March 2013
Leading positions in niche markets Aggressive financial profile and very aggressive financial policy, Modest revenue base and limited product diversity that amplifies the risk of funding delays and changes in defense spending priorities, and Limited covenant cushion The ratings on Ohio-based Hunter Defense Technologies Inc. reflect the uncertainty surrounding future federal defense budgets, which accounts for the vast majority of revenue for the company. Standard & Poor's Ratings Services expects that Hunter's earnings will stabilize at current levels in the next few months and eventually improve moderately, leading to better credit protection measures and more covenant cushion. However, further deterioration in earnings, for example because of larger-than-expected defense spending cuts, may lead to credit metrics that no longer support the...
Companies mentioned in this report are: Hunter Defense Technologies Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Hunter Defense Technologies Inc.