S&P: GNC outlook developing

Standard & Poor's said it revised its CreditWatch listing on General Nutrition Centers Inc. from developing to negative, following the company's announcement that it no longer is contemplating a public offering.

The ratings, including the B corporate credit rating, which were initially placed on CreditWatch with developing implications on Nov. 6, will remain on CreditWatch as the company continues to evaluate alternatives that include a possible sale of the company, which could be financed with a substantial amount of additional debt, the agency said.

S&P noted that the ratings on GNC reflect a highly leveraged capital structure, with total lease-adjusted debt pro forma for the company's recent PIK note issuance of about 6.8x.

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