The ratings on Weight Watchers International Inc. reflect the company's moderately high debt levels resulting from its September 1999 leveraged acquisition from H.J. Heinz Co., its narrow business focus, and short-term track record as a stand-alone company. These factors are partially offset by the firm's strong brand name and its position as a leading 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, provides geographic diversity. Weight
