S&P alters ABC Fitness view to stable

S&P said it changed the outlook for ABC Financial Intermediate LLC (ABC Fitness) to stable from negative and affirmed its B- issuer rating.

“Billing volumes have recovered faster than we expected. The reopening of fitness clubs across North America continue to provide positive momentum for ABC Fitness. The total of billed members has grown sequentially month over month since February 2021 well into the quarter ended Sept. 30, 2021, resulting in about 15% growth compared to year-end December 2020,” S&P said in a press release.

The agency said it now sees ABC delivering modest free operating cash flow for 2021 and maintaining a sufficient covenant cushion at the end of its covenant waiver period on June 30, 2022.

“The stable outlook reflects our expectation that credit measures will remain steady with adjusted EBITDA margins in the low-20% area, resulting in FOCF/debt in the low-single-digit-percentage area,” S&P said.

© 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.