S&P upgrades Town Sports

Standard & Poor's said it raised the corporate credit rating on Town Sports International Holdings Inc. to B+ from B.

The agency also said it upgraded the rating on the company's $350 million credit facility, consisting of a $50 million revolver due 2016 and a $300 million term loan due 2018, to B+ from B.

The recovery rating remains 3, indicating 50% to 70% expected recovery in a default.

The outlook is stable.

The upgrade reflects an expectation that recent improvements in operating trends with modest debt reduction will continue over the intermediate term, S&P said.

The ratings also consider the company's weak business risk profile and aggressive financial risk profile, the agency said.

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