Weight Watchers International Inc. 'B-' Ratings Affirmed; Outlook Revised To Positive

The solid winter recruiting season at U.S.-based weight management services provider Weight Watchers International Inc. indicates the potential for improving credit metrics at the company in 2017. We anticipate that Weight Watchers may strengthen debt-to-EBITDA leverage to near 6x in 2018. We are affirming our 'B-' corporate credit rating on Weight Watchers and our 'B-' issue-level rating on the company's first-lien credit facilities. We are also revising our outlook to positive from stable, reflecting the potential for a higher rating if Weight Watchers can sustain strong expense management and operating performance, continue its effective marketing and recruiting efforts, and display steady EBITDA growth, with debt-to-EBITDA leverage approaching 6.5x over the next year. NEW YORK (S&P Global Ratings) May 16, 2017--S&P

...+ The solid winter recruiting season at U.S.-based weight management services provider Weight Watchers International Inc. indicates the potential for improving credit metrics at the company in 2017. + We anticipate that Weight Watchers may strengthen debt-to-EBITDA leverage to near 6x in 2018. + We are affirming our 'B-' corporate credit rating on Weight Watchers and our 'B-' issue-level rating on the company's first-lien credit facilities. + We are also revising our outlook to positive from stable, reflecting the potential for a higher rating if Weight Watchers can sustain strong expense management and operating performance, continue its effective marketing and recruiting efforts, and display steady EBITDA growth, with debt-to-EBITDA leverage approaching 6.5x over the next year. NEW YORK (S&P Global Ratings) May 16, 2017--S&P Global Ratings today affirmed its 'B-' corporate credit rating on New York, New York-based Weight Watchers International Inc. and revised the outlook to positive...

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