S&P drops Interactive Health

Standard & Poor's said it lowered its corporate credit and bank loan ratings on Interactive Health LLC to CCC+ from B-.

The rating on the senior unsecured debt was lowered to CCC from CCC+, the agency said.

The outlook is negative.

S&P said that the downgrade reflects the company's continued weak operating performance, primarily because of declining sales to its top customers and substantial increase in leverage resulting in tight covenant cushion.

The agency added that it believes Interactive Health will be challenged to offset revenue lost from its top two customers, The Sharper Image (unrated) and Brookstone (unrated).

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