The ratings on New York, N.Y.-based Weight Watchers International Inc. (WWI) reflect the company's narrow business focus, its participation in the highly competitive weight-loss industry, and its aggressive financial policy. These factors are somewhat mitigated by the company's leading market position, its well-recognized brand name, geographic diversity, predictable cash flows, and favorable demographic trends. WWI is a leading global provider of commercial weight-loss services. In the U.S. (WWI's largest market), the commercial weight-loss segment represents only about 7% of the highly competitive weight-loss industry, which includes other segments such as self-help weight-loss products, weight-loss drugs, and weight-loss services administered by doctors, nutritionists, and dieticians. The company's international operations accounted for about 39% of revenues for fiscal 2005, and provide some
