Moody's drops Town Sports

Moody's Investors Service said it lowered Town Sports International Holdings, Inc.'s corporate family rating to B2 from B1 and the rating on its senior discount notes to Caa1 from B3.

Concurrently, Moody's said it affirmed the Ba2 ratings on the senior secured credit facility of Town Sports International, LLC, a wholly owned subsidiary.

The outlook was revised to stable from negative.

The ratings downgrade reflects the company's weakened credit metrics and Moody's expectations that financial performance will continue to be challenged over the near-term such that metrics will remain consistent with the B2 ratings category, the agency said.

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