S&P cuts General Nutrition view to negative

Standard & Poor's said it revised its outlook on General Nutrition Centers Inc. to negative from stable.

Ratings on the company were affirmed, including the B corporate credit rating, the B+ bank loan rating, the B- senior unsecured debt rating, the CCC+ subordinated debt rating and the CCC preferred stock rating.

The outlook revision is based on the company's less-than-anticipated progress from its rebuilding efforts, lower margins, weak franchise operations and deteriorating credit metrics, the agency said.

S&P said the company's recent weak operating performance is due to softness in the diet category, a drop-off in sales of low-carb products and poor operational execution, which has resulted in a loss of market share.

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