Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sports Club Co. > News item |
Moody's affirms Sports Club
Moody's Investors Service said it affirmed the Caa2 corporate family rating and the Caa2 senior secured notes rating of The Sports Club Co. Inc.
The outlook remains negative.
The ratings continue to reflect substantial estimated recovery values for rated debt in a default scenario, the agency said.
Sports Club has not filed its 2004 form 10-K and form 10-Q's for the first two quarters of 2005 with the Securities and Exchange Commission. The company recently received a waiver of default under the indenture governing the senior secured notes provided the company files the required financial reports by Sept. 30, 2005. The failure to meet the Sept. 30 deadline shall constitute an event of default as of Oct. 1.
Moody's believes that the financial performance of Sports Club has improved based on its review of internal financial statements provided by the company. This improvement, if sustained, may lead to an increase in Moody's expectation of recovery values for rated debt in a default scenario. However, Moody's does not expect to change the outlook or consider an upgrade to the ratings until the company has completed and filed its financial statements for 2004 and the first two quarters of 2005.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.