Excel Fitness Holdings, Inc., the largest franchise holder and operator of Planet Fitness gyms, received an upgrade from Moody's on April 22. Moody's issued a B3 corporate family rating to the franchise company, up from its previous Caa1 rating, and issued a stable outlook.
Moody's attributed its upgrade to operating performance and membership rates will continue to trend upward as the majority of the public continues to receive vaccinations.
Planet Fitness membership is nearly at 95% of pre-pandemic levels, according to Moody's. COVID-19 restrictions resulted in shutting down gym centers for months beginning in March 2020. Further, as states began to loosen restrictions, fitness centers were among the last to reopen.
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