We forecast the COVID-19 pandemic will hurt U.S.-based WW International Inc.'s operating performance, especially its studio business that is based on in-person meetings. We believe the company's revenue and profitability will drop substantially due to the discretionary nature of the company's product offering and disruptions from the accelerated decline in its studio business. While we acknowledge the company has rapidly reduced costs, we are revising our outlook to negative from stable and affirming our 'B+' issuer credit rating. The negative outlook reflects the risk of a potential downgrade over the next 12 months if the company's operating performance deteriorates with leverage exceeding and sustained over 5x as macroeconomic conditions remains poor. The negative outlook reflects the risk that we could
