Moody’s – This is the same organization that downgraded U.S. debt. Although it may be true that if Oberndorf am Neckar,Gmbh is hit by a nuclear strike, H&K may be out of business (surprisingly, given the Ukraine situation, a consideration that Moody’s didn’t include). Net of it’s short term liabilities, the company’s brand and goodwill is sufficiently strong to survive what is more than likely a temporary cash flow squeeze. “If export licenses are declined or delayed”, “if markets shrink” those are all forward looking statements made by Moody’s analysts in the interest of conservatism and don’t reflect reality to a large extent.
Heckler & Koch GmbH (HK) is a privately held corporation and it has a number of options for recapitalization, should the need arise, that include an IPO and retiring some of their debt, or restructuring of their debt to name just a few. Net of current liabilities H&K has so much value that it’s ludicrous to think they are going out of business. Please folks, you need to take what Moody says with a grain of salt.