Standard&Poor's Ratings Services' ratings on New York City–based Weight Watchers International Inc. (WWI) reflect our assessment of the company's fair business risk profile and aggressive financial risk profile. Our business risk profile assessment incorporates WWI's position as a highly recognizable brand with a solid market position and global presence. However, these strengths are softened by the company's narrow business focus in the highly competitive weight-loss industry and its sensitivity to trends in consumer discretionary spending. In our financial risk assessment, we take into consideration the majority ownership by a sponsor, the company's leveraged capital structure, and its aggressive financial policy, while recognizing the company's stable cash flow generation and second-quarter debt repayment. WWI is susceptible to changes in
