Moody’s downgrades GNC

Moody’s Investors Service said it downgraded General Nutrition Centers, Inc.’s corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD, its senior secured term loan B2 to Caa2 from B3, its senior secured FILO term loan to B1 from Ba3 and its speculative grade liquidity rating to SGL-4 from SGL-3. The outlook remains negative.

"GNC’s downgrade reflects its over $600 million of debt coming due before March 2021 as it continues to work to stabilize its operating income and executes its business realignment," said Christina Boni, a Moody’s vice president, in a press release.

Moody’s forecasts GNC can continue to generate more than $75 million in free cash flow and fund its upcoming $159 million convertible debt maturity with excess cash and its revolver availability.

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