S&P puts General Nutrition Centers on positive watch

Standard & Poor's said it placed its ratings on General Nutrition Centers Inc. (GNC), including the B corporate credit rating, on CreditWatch with positive implications.

According to the agency, the placement follows the S-1 filing with the SEC by parent company GNC Corp. for an IPO of up to $400 million of its common stock.

S&P noted that GNC intends to use about $100 million of the proceeds to redeem its series A preferred stock, which it said it considers as debt for analytical purposes.

In addition, GNC has achieved improvement in its operating performance for the past two quarters, with solid increases in comparable-store sales and a recovery of profit margins, the agency said.

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