We believe credit metrics for U.S.-based weight loss service provider Weight Watchers will continue to deteriorate in 2014 as a result of lower revenues and weak enrollment trends in its traditional meeting business. We are lowering our ratings on Weight Watchers, including our corporate credit rating to 'B' from 'B+', and removing them from CreditWatch. The outlook is stable. The stable outlook reflects our expectation that Weight Watchers will continue to generate good cash flow and liquidity will remain adequate while the company works to reverse declining enrollment trends and reduce its cost structure. On April 4, 2014, Standard&Poor's Ratings Services lowered its corporate credit rating on New York City-based Weight Watchers International Inc. to 'B' from 'B+'.
