Leading market position; Geographic diversity; Predictable cash flows; and Favorable demographic trends. Narrow business focus; Participation in the highly competitive weight-loss industry; and Aggressive financial policy and leveraged capital structure. The ratings on New York City-based Weight Watchers International (WWI) reflect the company's narrow business focus, its participation in the highly competitive weight-loss industry, its highly leveraged financial profile, 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's overall operating performance was fairly solid in 2006. Sales and operating income increased by about 7.1% and 25.6%, respectively. WWI has been able to sustain revenue growth in the highly competitive
