Analysts at Moody's Investors Service have upgraded various debt ratings of Tivity Health on the heels of the Franklin company’s sale of the Nutrisystem business it bought nearly two years ago.

In their upgrade, the Moody’s analysts said using the $519 million Tivity netted from the sale of Nutrisystem to pay down debt has “materially” improved the company’s financial situation despite the impact of the COVID-19 pandemic on Tivity’s health care units. Debt ratios, they added, should remain stable in the next few quarters as the company’s looks to trim costs some more.

“Moody's expects the recovery in visitation will pick up in the later part of 2021 once a higher share of the public has been vaccinated and the coronavirus pandemic subsides,” the analysts wrote recently. “Gym visitation by seniors is nevertheless likely to remain below pre-pandemic levels because of apprehension about being in social settings. Moody's expects the company will focus on expanding its digital offerings to keep its members engaged while at home.”

Shares of Tivity (Ticker: TVTY) finished last week at $23.43, up slightly from the Friday before. They have risen about 35 percent over the past six months, pushing the company’s market capitalization past $1.1 billion.

This story first ran in our partner publication the Nashville Post.

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