S&P lifts Fitness International

S&P said it raised its corporate credit rating on Fitness International LLC to B+ from B. The outlook is stable.

At the same time, S&P raised the issue-level rating to B+ from B on the company’s proposed amended senior secured credit facility, consisting of a $337.5 million revolver, a $337.5 million term loan A and a $1.2 billion term loan B, all due in 2020. The recovery rating remains 3 and reflects an expectation for meaningful (50%-70%; upper half of the range) recovery for lenders in the event of a payment default.

“The upgrade reflects our expectation that the company will maintain total lease-adjusted debt to EBITDA below 5.5x,” said S&P credit analyst Justin Gerstley in a news release.

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