S&P ups WW loan, notes

S&P said it upgraded WW International Inc.’s first-lien credit facility to BB from BB- and revised the recovery rating to 1 (rounded estimate: 95%). S&P also raised the rating on the company’s unsecured notes to B+ from B and revised the recovery rating to 4 (rounded estimate: 30%). The actions reflect lower debt balances at the time of S&P’s simulated default scenario following debt prepayments in 2019.

In addition, the agency affirmed the company’s B+ rating and revised the outlook to stable from negative.

“The outlook revision to stable reflects WW’s successful winter recruitment and better-than-expected performance in 2019. WW’s performance is highly dependent on its winter-recruitment efforts, and with most of the season under its belt and more than 5 million subscribers, we now expect 2020 to be a good year with double-digit revenue and earnings growth and leverage improving to the mid- to high-3x area by the end of the year,” said S&P in a press release.

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