WW International Inc. announced that on Jan. 31, 2025, it borrowed $121.3 million under its $175 million revolving credit facility. The aggregate principal amount of borrowings under the revolving credit facility is now $175 million, well in excess of the springing covenant threshold. We believe this signals the company is in financial distress and it is increasingly likely it will default, which could include a bankruptcy or an out of court restructuring, over the next six months. We expect WW will default on its 5.25x maximum net leverage covenant for the test period ending March 29, 2025, because covenant leverage is over 10x. This will likely precipitate a payment default. Therefore, we lowered the issuer credit rating on WW to
