Market Overview

Moody's Gets Pumped About Planet Fitness, Upgrades Outlook

Share:
Moody's Gets Pumped About Planet Fitness, Upgrades Outlook
Related PLNT
20 Stocks Moving In Friday's Pre-Market Session
70 Biggest Movers From Yesterday

Moody's Investors Services, the notable credit rating agency, boosted their ratings outlook on Planet Fitness Inc (NYSE: PLNT)'s debt due to the company's strong operating performance and an improving financial profile.

Moody's upgraded Planet Fitness' debt rating from Stable to Positive while simultaneously boosting their Probability of Default Rating (PDR) for the company from B2-PD to B1-PD. In addition, the company's Speculative Grade Liquidity rating was boosted from SGL-2 to SGL-1.

Planet Fitness' B1 Corporate Family Rating (CFR) and B1 rating on its Secured Bank Credit Facilities remain unchanged.

Moody's justified its outlook based on expectations for Planet Fitness to see strong EBITDA and cash flow from operations growth. Of particular note, the company's free cash flow-to-debt rose above 8 percent. Moreover, Moody's analysis suggests that Planet Fitness will generate about $85 million in free cash flow for the full year 2017, which will grow to $100 million in 2018.

"Planet Fitness is poised to experience another year of strong earnings growth as its franchise based business model allows it to have new club openings that outpace the market which we believe will drive further market share gains and strengthen credit metrics and cash flow," stated Maggie Taylor, a senior vice president with Moody's.

Related Links:

Foursquare Makes Another Data-Based Prediction—And It Thinks It Knows The Winner In Gym Stock Earnings

Why The Selloff In Planet Fitness Is Disconnected From Strong Fundamentals
_______
Image Credit: By Anthony92931 (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

Latest Ratings for PLNT

DateFirmActionFromTo
Nov 2018MacquarieDowngradesOutperformNeutral
Sep 2018GuggenheimMaintainsBuyBuy
Aug 2018JP MorganDowngradesOverweightNeutral

View More Analyst Ratings for PLNT
View the Latest Analyst Ratings

Posted-In: credit rating GymsAnalyst Color Long Ideas News Upgrades Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (PLNT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Gilead Gets An Upgrade Amid 'Game-Changing' Kite Deal

The Market In 5 Minutes