On Jan. 9, 2004, Standard&Poor's Ratings Services assigned its 'BB' bank loan rating and its recovery rating of '3' to commercial weight-loss service provider Weight Watchers International Inc.'s (WWI) proposed $500 million senior secured credit facilities due 2010. The 'BB' bank loan rating is at the same level as the corporate credit rating; this and the '3' recovery rating indicate that the lenders can expect meaningful (50%-80%) recovery of principal in the event of a default. The ratings on the proposed credit facilities are based on preliminary offering statements and are subject to review upon final documentation. Proceeds from the new credit facilities will be used to refinance the company's existing senior secured bank debt. The new facilities
