Remington’s Credit Rating Downgraded by Moody’s

Moody’s Investor Services, a division of the ratings company, has downgraded the Remington Outdoors Company CFR to Caa1, with a “stable outlook” (meaning they do not think the credit rating will change). According to Moody’s documentation Caa1 is the first class of Caa, where “obligations rated Caa are judged to be of poor standing and are subject to very high credit risk.” This Caa1 rating is slightly above the “Ca” rating which is a “highly speculative” and “near default” investment.

In other words, they are saying don’t invest your money in Remington unless you are willing to take significant risk.

Looking outside the financials (where Remington has a $580 million secured term loan due in April 2019 and a further $250 million due in May of 2020), Big Green has not been on solid footing. The company is in the middle of moving and consolidating most of its manufacturing to Huntsville, Alabama.

Further, it is plagued in multiple “recalls” (which may not be called a “recall” on a few of their flagship products, including the Remington 700 bolt-action rifle.

With revenue forecasts being steady at a time where other large publicly traded companies such as Smith & Wesson and Ruger are showing stead, if slow, growth, Moody’s mood is rather dour.

The full report and detailed rationale can be found at Moody’s original announcement. 

Nathan S

One of TFB’s resident Jarheads, Nathan now works within the firearms industry. A consecutive Marine rifle and pistol expert, he enjoys local 3-gun, NFA, gunsmithing, MSR’s, & high-speed gear. Nathan has traveled to over 30 countries working with US DoD & foreign MoDs.

The above post is my opinion and does not reflect the views of any company or organization.


  • Man, one bad thing after another coming from this company.

    • ostiariusalpha

      That’s what happens 80% of the time when any publicly traded company is majority owned by an outside private equity firm. Those controlling firms are vampires that cut the company’s reinvestment capital (money for research, skilled labor, maintenance, and quality assurance) in the name of increasing efficiency in order to squeeze out higher profits temporarily till they sell the company off. Hedge funds aren’t any better, but they’re more like piranhas taking bites out of everything they pass by. The truly pathetic part is that investors in these private equity firms & hedge funds don’t actually see any higher returns than they would by simply directly investing in a diversified portfolio of companies that are managed by people who actually come from each company’s industry. In fact, historically the returns have been lower, while the firm’s/fund’s managers make absurd salaries.

  • Spencerhut

    Remington has been ruined by too much greed, just like Colt. Remington really needs to put quality back to the forefront. People want to buy their products, just like their parents and grandparents did. Instead now we sell them just about anything else, CZ & Savage bolt guns and CZ & Mossberg shotguns have replaced the Remington equivalents in our store.

    • In a meeting with the CEO a few weeks ago he said the emphasis is back to basics. Evaluate/tweak the foundation of quality the company was started on and introduce new guns later. In other words get the basics right before a mad rush to introduce a bunch of new guns(my words).

      • Miguel Raton

        If you really *can* speak w/ the CEO, tell him Remington needs to stop spending bucket$ of money coming out with new products that nobody asked for [like the 30RAR] and try supporting their existing products [Remington legitimized the 6.5mm-’08 as the 260 Remington over almost 20 years ago, but they don’t offer the chambering in their AR-10 [“LR-308”] product line. “Oh, we’ll sell the ammo to other people, but we wouldn’t want to build the platform that everyone is shooting it in…” How stupid is THAT? With the cr@ptastic QC they’ve been pushing out the door and flat out execrable management they’ve sustained for so long, they deserve to go the way of the passenger pigeon. Unlike the bird, however, nobody is going to be sad to see them go. Good god, they could get more competent management decisions by paying some high school kid minimum wage to monitor internet forums and mine them for the information on what the company needed to fix yesterday…

  • Ben Loong

    One news story that I’m surprised was never picked up here: earlier this year Remington got in a bit of hot water with its big M4A1 contract for the Philippine military.

    As it turned out, when the first few thousand of the carbines were delivered, some troops were noticing some problems with accuracy at range. When army TRADOC and the government arsenal did some tests, they found that the rear iron sights on all 30 of the test units wouldn’t hold zero due to loose moving parts.

    Needless to say the military was quick to call up Remington regarding the warranty and gave them three months to fix their mistake. In the end, Remington apparently had to fix more than 20,000 units of the 44,000 that had been delivered already.

  • Sandydog

    Remington’s failures aren’t unique to it, but are sadly common in the firearm industry. Colt is having its problems, S&W in its history has come close to bankruptcy and ending manufacture completely, and Winchester is only now recovering slowly from its series of disasters dating back 50 years or more. Each one has suffered under the thumb of conglomerate masters who couldn’t care less that they are building firearms instead of television sets.
    Firearms should be manufactured like firearms, as durable goods meant to last and not as ‘consumer goods’ with a limited lifespan, like a toaster or microwave oven. They should be made by people with a strong interest in firearms, and in building firearms that inspire buyer confidence and customer loyalty. Instead, with Remington and others, ownership lies in the hands of people who are financiers and investors, interested in making firearms only as just another product to sell. If they didn’t make firearms, they’d be making electric griddles or lawnmowers if that would make the same profit. This attitude obviously trickles down to the workers on the assembly lines, forced into building firearms down to a volume-sales price and not up to a standard.
    If Remington’s new management can overcome the limitations placed upon them by their conglomerate overlords, there’s the possibility that Remington can rise from the ashes once more. They’ve done it before.

  • Budogunner

    Remington had been on my boycott list since I had professional dealings with them through another Freedom Group Company that Remington held the purse strings to. I saw the writing on the wall, sold my PSS while people still thought it was a prestigious model, and have been fine with my Savage ever since.