Moody's: General Nutrition view negative

Moody's Investors Service said it revised the outlook of General Nutrition Centers Inc to negative from stable and affirmed all ratings.

The revision of the outlook to negative reflects Moody's concern that financial flexibility may remain weaker than appropriate for the assigned rating levels. Ratings would be lowered if operations or debt protection measures do not improve from current levels within the medium term or the currently adequate liquidity position becomes a concern. Moody's said it would become more comfortable with current ratings if better sales performance leads to greater free cash flow and improvements in financial flexibility.

Ratings affirmed include the $172 million secured bank facility commitment at B1, the $150 million 8.625% senior notes due 2011 at B3, the $215 million 8.5% senior subordinated notes due 2010 at Caa1, the senior implied rating of B2, and the long-term unsecured issuer rating of B3.

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