S&P assigns Equinox notes B-

Standard & Poor's said it assigned its B- rating to Equinox Holdings Inc.'s proposed $290 million senior unsecured notes due 2012.

At the same time, S&P said it lowered its corporate credit rating on Equinox to B- from B due to increased financial risk from the pending debt-financed acquisition.

In addition, the rating was removed from CreditWatch with negative implications. The outlook is stable.

S&P added the ratings reflect Equinox's geographic concentration, relatively small-scale, aggressive financial profile, debt-financed expansion plans and the increasingly competitive fitness club market.

These considerations are minimally offset by the company's strong New York City club cluster, good same-club revenue and membership growth and better margins than industry peers, the agency noted.

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