...- WW International Inc. announced on its third-quarter earnings call that it appointed advisers to assist in evaluating options related to its capital structure. While the timing and outcome of any resolution is uncertain, we believe the risk of a default over the next 12 months has increased. - As a result, we lowered the issuer credit rating on WW to '###' from '###+'. The outlook is negative. - At the same time, we lowered the ratings on the company's senior secured debt to '###' from 'B-'. We also revised downward our recovery rating on the debt to '4' from '2', indicating our expectation for average recovery (30%-50%; rounded estimate 30%) in the event of a payment default. This reflects the secular decline in the traditional weight loss category as evidenced by continued subscriber losses due to increased competition, as well as an aging demographic with weaker demand from younger consumers and an overall weaker brand name. - The negative outlook reflects the potential for a debt...
