Fitch assigns Life Time Group B+

Fitch Ratings said it assigned first-time ratings to Life Time Group Holdings Inc. and Life Time Inc. (collectively, LTH or Life Time) including their B+ long-term issuer default ratings. The agency also assigned Life Time, Inc. senior secured ratings of BB+/RR1 and senior unsecured ratings of B+/RR4. The outlook is stable.

“The ratings and outlook reflect LTH's strong market position, financial flexibility, and improving financial structure offset by its aggressive growth strategy, low customer switching costs, and inherent cyclical risk in the sector. LTH has scaled and improved profitability via increased service offerings, price increases, cost efficiencies, and new openings in affluent areas.

“Fitch believes LTH's exposure to high-income markets and unique suite of services offers it some protection from macroeconomic headwinds relative to other fitness center operators in the space,” the agency said in a press release.

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