...- We revised our 2022 base-case revenue and EBITDA forecast for California-based fitness club operator Fitness International LLC because of good first-quarter performance compared to our previous expectations. - As a result, we expect the company will comfortably cover its fixed charges going forward, including repayments of deferred rent, and we believe the capital structure is now sustainable. - Therefore, we raised our issuer credit rating on Fitness International to 'B-' from '###+'. - At the same time, we raised our rating on its first-lien senior secured facility to 'B' from '###+' and revised our recovery rating to '2' from '3' on better expected recovery due to a lower debt balance in our simulated default scenario. - The positive outlook reflects our view that Fitness International could end 2022 with leverage below our 6.5x upgrade threshold, but that heightened macroeconomic risks and very thin covenant headroom when the company begins measuring its covenants again in the third...
