S&P trims 24 Hour Fitness

S&P said it trimmed 24 Hour Fitness Worldwide Inc.’s rating to CCC+ from B-. The agency also lowered the issue-level rating on the company's senior secured credit facility to B- from B, with a 2 recovery rating and the rating on the company's senior unsecured notes to CCC- from CCC, with a 6 recovery rating.

“The downgrade reflects heightened economic uncertainty because of Covid-19, significant exposure to California (which could be under pressure because of the coronavirus) and material risks related to the ongoing transformation in the company's sales and operating model. The company experienced a material decline in financial performance through the first three quarters of 2019, and we believe there are more risks to the company's ability to improve operating performance in 2020,” said S&P in a press release.

The outlook is negative.

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