[VB]

Given the amount of guns Colt makes for LEO, the military and allies, its really hard to understand their cash flow problems. This is not the first time either...

Full story here.

http://www.thefirearmblog.com/blog/2010/11/17/colt-defenses-credit-rating-dropped-to-b/

Nov 16 - Standard & Poor's Rating Services said today that it has lowered its corporate credit rating on Colt Defense LLC [CDEFHC.UL] (Colt) to 'B' from 'B+'. At the same time, we lowered the issue-level rating on the company's unsecured notes to 'B' from 'B+', although the '4' recovery rating remains unchanged. We have placed both the corporate credit and issue ratings on CreditWatch Negative.

 

[ACRFan]

The same thing happened to Ford and many others. They get complacent and forget what made them successful. The sad thing is that they are not making anything new that I am aware of that would require large sums of money for R&D. They make a 60 year old firearm and make it well. So what are they spending all their money on? Can you say bonuses?