Moody’s lifts Life Time

Moody’s Investors Service said it raised Life Time Inc.’s first-lien revolver, term loan and senior secured notes to B1 from B2 and its senior unsecured notes to Caa1 from Caa2. The agency also upgraded the company’s corporate family rating to B2 from B3 and the probability of default rating to B2-PD from B3-PD. The company's SGL-3 speculative grade liquidity rating is unchanged.

“The upgrade of CFR to B2 reflects Life Time's strong ongoing operating performance recovery that is resulting in rapid de-leveraging through earnings growth as membership continues to recover from depressed levels during the coronavirus pandemic. Moody's lease-adjusted debt-to-EBITDA leverage for Life Time is in the low 6x as of June 30, 2023, and Moody's expects leverage will continue to decline to the mid 5x range through earning growth driven by continued membership and new gym adds over the next year,” the agency said in a press release.

The outlook is stable.

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