S&P trims 24 Hour Fitness

S&P said it downgraded 24 Hour Fitness Worldwide Inc. to D from CCC+ because it anticipates the company is unlikely to make the interest payment on the notes within the 30-day grace period and is also unlikely to make upcoming interest payments on its first-lien obligations.

The agency also lowered the issue-level ratings on the company’s senior secured term loan and revolver to CCC- from B-.

The company missed the payment due Monday on its senior notes due 2022.

“In addition, there are credible press reports the company is seeking a debt restructuring or Chapter 11 bankruptcy filing. While the company is current on its senior secured term loan and revolver, substantial doubt exists whether the company will make its interest and amortization payments on these facilities, due on June 30 and July 17, respectively, S&P said in a press release.

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