Moody’s ups Town Sports facilities; view stable

Moody's Investors Service said it changed the outlook for the debt of Town Sports International Holdings, Inc. to stable from negative.

At the same time, the agency affirmed the company's Caa2 corporate family rating, Caa2-PD probability of default rating and speculative grade liquidity rating at SGL-3, while also upgrading the senior secured credit facilities to Caa1 from Caa2.

Town Sports' speculative grade liquidity rating is SGL-3.

"Town Sports has made progress in stabilizing the fee-based portion of its revenue stream, which is an important early step in the company's recovery. The ability to grow its membership base while demonstrating the viability of its pricing strategy in the highly-competitive fitness club sector will be key to future improvement in the company's credit profile," Moody's analyst David Berge said in a news release.

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