S&P upgrades ICON

Standard & Poor's said it raised the corporate credit rating on ICON Health & Fitness Inc. to B+ from B, along with its $205 million senior secured notes due 2016 to B from B-.

The recovery rating remains 5, indicating 10% to 30% expected recovery in a default.

The outlook is stable.

The upgrade reflects an expectation that credit measures will remain supportive of a B+ corporate credit rating over the intermediate term, S&P said, and that ICON will maintain adequate liquidity through both availability under its asset-backed loan and internally generated cash to support seasonal working capital uses of cash.

The agency also said it believes that management will continue to effectively manage certain costs and that revenue will be fairly stable over the intermediate term.

ICON is expected to remain vulnerable to both increases in input costs and pricing pressure, given the company's large customer base of mass merchandise retailers, S&P added.

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