The ratings on New York City–based Weight Watchers International Inc. (WWI) 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 good market position, well-recognized brand name, geographic diversity, predictable cash flows, and favorable demographic trends somewhat mitigate these factors. However, sensitivity to extremely challenging economic conditions and lower consumer discretionary spending is a rating factor. Standard&Poor's Ratings Services believes the company is susceptible to economic cycles due to its narrow business focus and the discretionary nature of its services. For the fiscal year ended Jan. 1, 2011, sales were up about 3.8%, driven by the North American company-owned meetings business and growth in WeightWatchers.com. Nevertheless,
