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.