The ratings on Weight Watchers International Inc. reflect the company's high debt levels resulting from its September 1999 leveraged acquisition from H.J. Heinz Co. This is partially offset by the firm's strong brand name and position as the world's largest provider of commercial weight-loss services. The company's weight-control program centers around weekly meetings that incorporate group support, education about healthy eating habits, behavior modification, and physical activity. The company operates through a network of owned and franchised locations, domestically as well as internationally. Despite a somewhat narrow business focus, the company's international presence, accounting for about 50% of sales in fiscal 2001, adds to its diversity. Weight Watchers also benefits from a highly variable cost structure, as most facilities are
