S&P trims Tivity Health

S&P said it downgraded Tivity Health Inc. and its first-lien credit facility to B from B+ and placed the ratings on CreditWatch with negative implications.

“The downgrade reflects our expectation that temporary closures of the fitness network within Tivity’s healthcare unit due to the spread of the coronavirus and reduced demand in their nutrition segments will result in S&P Global Ratings-adjusted leverage to remain above our previous downgrade threshold of 5x in 2020,” said S&P in a press release.

The agency said it aims to resolve the CreditWatch within the next 30 to 90 days after it reviews the company’s first-quarter results and covenant headroom.

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