The idea that KTOS cannot handle its debt or manage a cost savings refi in June is put forth in utter ignorance. If you want to compare its debt load to a company with a truly high and most likely unmanageable debt load, which maintains a high valuation relative to risk to common stock in bankruptcy or high dilution, look at CZR (Caesars)
A far better predictor than any of Moody's Models (and this has been shown in scientific studies of past performance) is the implied default risk in the bond market itself. As you see below, from Morningstar, Ktos default risk is unremarkable:
PS Moody's was strongly implicated in the most recent financial crash in its manipulation of models used for statistical predictions of default risk of default risk in structured mortgage securities. If you know anyone at Moody's willing to talk of the record, they will tell you that such manipulation was and remains business as usual. It is part and parcel of being a for profit public company in a competitive market. So calling them "ignorant" rather than criminal is my letting them off with a lesser charge.
We need to give MarthaStewart a little slack here. Maybe she inadvertantly lashed out because she was having a bad day or her line of products lost another re-seller or, worse yet, "utter nonsense" was the limit of her technical, in-depth analytical knowledge to support her position. You all should be more tolerant of our fellow posters here...
agreed. going to take one heck of a lot of $7mil new contracts to pay off that debt. And if they do some how manage to re-finance there will be liens on everything right down to the pencils in their desk drawers. Or in other words....KTOS will not be able to flush toilets with out the bankers approval. The POS will indeed re-surface.