Good geographic diversity within the U.S. and Canada with a leading market position in several large markets; Competitive nature of the fitness club operating environment; High fixed cost base due to operating leases; and Relatively low portion of revenue derived from ancillary services compared to peers. Total lease-adjusted debt to EBITDA likely around 5x through 2018; EBITDA coverage of interest expense in the high-2x area through 2018; Funds from operations (FFO) to debt in the low- to mid-teens area through 2018; and Adequate liquidity. The stable outlook on Irvine, Calif.-based fitness club operator Fitness International LLC reflects our expectation for good operating performance through 2018 and our belief that the company will not likely engage in incremental leveraging transactions to
