S&P cuts Interactive Health view to negative

Standard & Poor's said it revised its outlook on Interactive Health LLC and its wholly owned subsidiary Interactive Health Finance Corp. to negative from stable and also affirmed its B corporate credit and B- senior unsecured debt ratings.

The outlook revision reflects Interactive Health's weaker operating performance and credit measures. Leverage has increased since year-end, reflecting lower EBITDA margins, S&P said.

S&P also said it is concerned about the future business relationship with a key customer, Brookstone, which has been acquired by a consortium led by Osim International.

The ratings reflect the company's substantial debt levels, narrow product focus, small size, customer and supplier concentration and the discretionary nature of massage chair purchases, S&P said.

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