Moody's lifts General Nutrition view to stable

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

Revision of the outlook was prompted by the sales recovery since the middle of 2005 and the associated improvements in financial flexibility and debt protection measures, the agency said.

Ratings affirmed include the senior secured bank loan 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 and the corporate family rating at B2.

Moody's said the corporate family rating balances certain qualitative aspects of the company's franchise that have low investment-grade or high non-investment characteristics against its aggressive financial policy, weak credit metrics and revenue vulnerability to new product introductions.

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