Moody's rates 24 Hour Fitness loan B1

Moody's Investors Service said it assigned a B1 rating to the proposed $130 million tack-on tranche B term loan facility due 2009 of 24 Hour Fitness Worldwide Inc. and affirmed existing credit ratings.

The outlook has been changed from stable to positive reflecting consistent free cash flow generation, growing revenues and improving credit metrics.

Moody's said the ratings reflect the company's significant lease adjusted leverage, anticipated increases in growth capital expenditures and growing competition in the fitness industry.

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