The ratings on New York City–based Weight Watchers International Inc. (WWI) continue to reflect the company's narrow business focus, participation in the highly competitive weight-loss industry, leveraged financial profile, and aggressive financial policy. The company's leading market position, well-recognized brand name, geographic diversity, predictable cash flows, and favorable demographic trends somewhat mitigate these factors. Sensitivity to extremely challenging economic conditions and lower consumer discretionary spending, leading to lower attendance at member meetings, is a rating factor. The company is susceptible to economic cycles due to its narrow business focus and discretionary nature of its services. In 2009, sales declined 8.9%, primarily due to lower North American company-owned (NACO) and global attendance, which declined 11.8% and 9.5%, respectively. Standard&Poor's
