U.S.-based weight-management services provider Weight Watchers International Inc.'s recent performance has exceeded our expectations as improving membership retention rates propel profit growth and result in stronger credit measures. We are raising our corporate credit rating on Weight Watchers to 'B' from 'B-'. We are also raising our issue-level rating on the company's first-lien credit facility to 'B' from 'B-' in conjunction with the corporate credit rating upgrade; and revising the recovery rating to '3' from '4' to reflect better recovery prospects on this debt facility because of improving business fundamentals. The outlook is stable, reflecting our expectations that the company will sustain its positive operating momentum, benefiting from improved digital capabilities and in-person meeting formats that should drive another successful
