Moody's: ICON view negative

Moody's Investors Service said it revised ICON Health &Fitness' outlook from stable to negative, citing weakening credit metrics and increased leverage as key concerns.

ICON's B1 corporate family rating was affirmed, as was its senior secured notes rating of B2.

"The negative outlook reflects our concern about ICON's increased leverage and margin pressure due to soaring commodity prices, exposure to the Chinese renminbi and higher freight costs," Moody's senior analyst Nancy Meadows said in a news release.

"These issues have weakened the company's credit metrics and driven leverage from 3.7 times at the end of fiscal year 2011 to 5.4 times for the 12-month period ending March 3, 2012," Meadows added in the release.

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