S&P rates 24 Hour Fitness loan B

Standard & Poor's said it assigned its B bank loan rating to the proposed $700 million senior secured credit facilities of 24 Hour Fitness Worldwide Inc.

The outlook is stable.

The facilities include a $100 million revolving credit facility due 2011 and a $600 million term loan B due 2012. The rating is the same as the corporate credit rating.

The rating action weighs Forstmann Little & Co.'s acquisition of 24 Hour Fitness for about $1.6 billion.

The ratings continue to reflect 24 Hour Fitness' aggressive growth strategy, its high financial risk and competitive industry pressures. These considerations are partially offset by the company's geographic diversity and market-leading club clusters in several metropolitan areas, S&P said.

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