Leading market position with good brand recognition; Geographic diversity; Stable cash flow generation; and Favorable demographic trends. A narrow business focus; Participation in the highly competitive weight-loss industry; Some sensitivity to weak economic conditions and lower consumer discretionary spending; and An aggressive financial policy and leveraged capital structure. 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
