Moody’s changes Weight Watchers view to stable

Moody’s Investors Service said it revised Weight Watchers International, Inc.’s outlook to stable from negative, given strong subscriber metrics posted for year-end 2019 and a reduction in debt-to-EBITDA leverage from voluntary debt prepayments.

Moody’s affirmed Weight Watchers’ Ba3 corporate family rating, its Ba3-PD probability of default rating, Ba2 senior secured credit facility ratings and B2 senior unsecured notes rating. There is no change to the company’s speculative grade liquidity rating of SGL-1.

“Moody’s is changing Weight Watchers’ outlook to stable, from negative, on the strength of its early 2019-2020 peak diet season subscriber metrics, improved free cash flow generation and our expectations for further reduction in debt leverage. The company’s calendar-year-end 2019 subscriber count was 4.2 million, up 8% from the prior year-end, and a record for any year-end,” said Moody’s in a press release.

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