The corporate credit rating on Weight Watchers International Inc. (WWI) reflects Standard&Poor's Ratings Services' assessment that the company's business risk profile remains "fair" and its financial risk profile "aggressive." In assessing financial risk, we take into consideration Artal's majority ownership and board control--and influence on financial governance--while recognizing the company's significant and rather predictable cash flow generation. Our business risk profile assessment incorporates our view that WWI will maintain its standing as a highly recognizable brand with a solid market position, international presence in a growing global market, and favorable demographic trends, as well as the company's narrow business focus (albeit with recently broadening service offerings) in the highly competitive weight-loss industry, and its sensitivity to consumer discretionary
