No frills chain PureGym gets a clean bill of health from credit rating agency Moody’s
The no-frills exercise chain PureGym has received an endorsement from Moody’s.
Analysts at the credit rating agency forecast a 10 per cent contraction in economic activity in the UK this year, which they said was likely to ‘curb consumer confidence’.
But it said the impact of this on the gym sector was not yet clear, and it expected the value positioning of Pure-Gym to provide ‘a degree of insulation to negative macroeconomic developments compared with the broader fitness and leisure market’.
Coronavirus crisis: Analysts at the credit rating agency forecast a 10 per cent contraction in economic activity in the UK this year
The analysts said: ‘Some individuals may decide to trade down from premium or mid-market gyms towards value offerings.’
It said the chain’s flexible offering and user-friendly technology should also protect it and help it to ‘recover quicker than peers’.
The chain offers 24-hour gym use, often without users having to sign a contract.
Moody’s said its geographical spread was also helpful, adding: ‘Both in Switzerland and Denmark the membership has already exceeded 90 per cent of 2019 level within weeks of re-opening.’
As a credit ratings agency, Moody’s monitors Pure-Gym’s £525million debt facilities.