S&P: Equinox view now stable

Standard & Poor’s said it affirmed its B corporate credit rating on Equinox Holdings Inc. and revised the outlook to stable from positive.

At the same time, S&P affirmed the B issue-level rating, with a recovery rating of 3, on Equinox’s aggregate $745 million senior secured credit facility due 2020, including the proposed $150 million incremental term loan. The 3 recovery rating reflects an expectation for meaningful (50%-70%) recovery in the event of a payment default.

S&P also affirmed the CCC+ issue-level rating, with a recovery rating of 6, on the company’s second-lien term loan. The 6 recovery rating reflects an expectation for negligible (0%-10%) recovery in the event of a payment default.

“The revision of the outlook to stable from positive reflects incremental leverage from the proposed transaction and our expectation for adjusted operating lease-adjusted leverage to remain above 6x through 2015,” said S&P credit analyst Shivani Sood in a news release.

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