S&P upgrades GNC

Standard & Poor's said it raised the corporate credit rating on GNC Holdings Inc. and wholly owned subsidiary General Nutrition Centers Inc. to BB from BB-.

The outlook is stable.

The agency also raised the senior secured debt rating on General Nutrition Centers to BB from BB-. The recovery rating on the secured debt remains at 3, indicating 50% to 70% expected recovery in a default.

The ratings reflect the company's significant financial risk profile given its good cash flow generation, stable credit metrics and more moderate financial policies, S&P said.

The company's business risk profile is fair, reflecting GNC's leading position in the highly competitive and fragmented nutritional supplement specialty retail sector, good profitability measures and an expectation for near-term sales growth to be above the industry average of 3% to 6%, the agency said.

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