S&P cuts Life Time Inc.

S&P said it downgraded Life Time Inc. to CCC+ from B- with a developing outlook. The agency also cut senior secured issue-level rating to B from B+ and the senior unsecured issue-level rating to CCC- from CCC. The recovery ratings remain 1 and 6, respectively.

S&P also removed the ratings from CreditWatch with negative implications.

“The downgrade reflects our assumption that Life Time will experience a spike in leverage and a significant cash burn rate while gyms are closed and possibly during the early months of re-openings, which could use a substantial portion of the company's liquidity and possibly result in an unsustainable capital structure,” said S&P in a press release.

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