Kroll puts Planet Fitness, Massage Envy ABS on watch for downgrades

Gym Fitness
By Jennifer Kang
07 Apr 2020

Kroll Bond Rating Agency placed all whole business securitizations from Planet Fitness and Massage Envy on negative watch this week, warning that prolonged closure of their businesses will lead to disruption of cash flows to to the bonds.

The increasing spread of Covid-19 has resulted in mandatory city-wide shutdowns of non-essential businesses, as well as a wave of anxious consumers choosing to self-isolate, said Kroll in a surveillance report. 

Given that both companies have the ability of drawing on variable funding notes and burn the ...

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