Moody’s trims 24 Hour Fitness

Moody’s Investors Service said it downgraded 24 Hour Fitness Worldwide, Inc.’s ratings including its corporate family rating to Caa1 from B2, probability of default rating to Caa1-PD from B2-PD, first-lien bank credit facilities to B2 from Ba3 and senior unsecured notes to Caa2 from Caa1.

“The downgrade follows the weaker than expected EBITDA forecasts for the full year 2019 and 2020 as a result of a decrease in new member sales conversion and higher attrition rates. These factors contributed to a sizable decline in membership count and an acceleration in comparable club revenue declines in the third quarter,” said Moody’s in a press release.

The outlook is stable.

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