S&P Global Ratings raised the debt ratings of  Life Time Inc. as the fitness club operator continues to deliver strong EBITDA growth and reduce debt leverage due to healthy demand and membership trends.

S&P also expects the company will increase revenue 10 percent-12 percent, in line with management’s guidance for 2026. The rating agency expects Life Time will adhere to its net leverage target of 2x or less, translating to S&P Global Ratings-adjusted leverage at or below its 3.75x threshold.

S&P saidraised all of its ratings on Life Time, including its issuer credit rating to ‘BB’ from ‘BB-’ and issue-level rating on its senior secured debt to ‘BBB-’ from ‘BB+’. The stable outlook incorporates expectations that increased revenue and EBITDA will reduce S&P Global Ratings-lease-adjusted leverage to the mid- to low-3x area through 2027.