S&P rates Fitness International facility BB-

S&P said it affirmed its B+ corporate credit rating on Fitness International LLC.

The outlook is stable.

At the same time, the agency assigned a BB- issue-level rating and 2 recovery rating to its proposed senior secured credit facility, consisting of a $337.5 million revolver due 2023, $900 million term loan A due 2023 and a $700 million term loan B due 2025.

The recovery rating reflects an expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default.

S&P said the affirmation reflects a view of the proposed transaction as leverage neutral and the agency’s forecast for leverage around 5 times through 2019, which is within the 5.5 times downgrade threshold.

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