Life Time Group Gets A Boost: Moody's Upgrades Credit Rating Citing Strong Performance
Portfolio Pulse from Shivani Kumaresan
Life Time Group Holdings Inc (NYSE:LTH) has had its issuer credit rating upgraded to B2 from B3 by Moody's Investor Service, citing improving performance, membership, revenue and EBITDA trends, and steps taken to improve its balance sheet and reduce leverage. The company also closed a sale-leaseback transaction for approximately $45 million in gross proceeds. However, LTH shares are trading lower by 1.72% at $16.59.
August 24, 2023 | 4:10 pm
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Life Time Group's credit rating upgrade by Moody's and the closure of a $45 million sale-leaseback transaction could potentially boost investor confidence. However, the company's shares are currently trading lower.
The credit rating upgrade by Moody's is a positive signal as it indicates the company's improving financial health. The successful closure of a sale-leaseback transaction also adds to the company's financial strength. However, despite these positive developments, the company's shares are trading lower, indicating that the market may have already priced in these factors or there may be other factors influencing the stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100