Moody's affirms 24 Hour Fitness; outlook down to negative

Moody's Investors Service said it affirmed the B2 corporate family rating of 24 Hour Fitness Worldwide, Inc. and changed the outlook to negative from stable.

According to the agency, the negative outlook reflects weak credit metrics for the rating category, tightening headroom under credit facility financial covenants and the need to refinance the secured credit facility prior to the maturity of the revolver in 2011 and term loan in 2012.

"The company's profitability during 2009 has been negatively affected by the severe recession in the United States and constrained access to credit by consumers. 24 Hour Fitness has experienced a significant decline in personal training revenues while credit card rejections and customer attrition rates have grown," stated Lenny Ajzenman, senior vice president.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.