Moody's lifts General Nutrition liquidity

Moody's Investors Service said it affirmed General Nutrition Centers, Inc.'s corporate family rating and probability of default rating at B1.

The affirmation follows the company's announcement that it has increased its existing term loan by $200 million.

The senior secured term loan rating was also affirmed at Ba3. The outlook remains stable.

At the same time, Moody's upgraded GNC's speculative grade liquidity rating to SGL-1 from SGL-2.

Moody's said it estimates that the incremental debt will increase debt to EBITDA from 4 times to 4.3 times for the lagging twelve-month period ended June 30, 2012. The affirmation acknowledges that although GNC's leverage will increase, the increase in leverage will only be temporary and credit metrics will remain in line with GNC's B1 corporate family rating.

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