S&P: Weight Watchers debt BB+

Standard & Poor's said it assigned its issue-level and recovery ratings to Weight Watchers International Inc.'s proposed new senior secured debt.

The debt includes up to $1 billion in bank debt and up to $600 million in institutional debt, due in 2017 and 2019, respectively.

The agency said the issue-level rating for each tranche is BB+, one notch above the corporate credit rating on Weight Watchers. The recovery rating is 2, indicating an expectation for substantial recovery in the event of a payment default.

According to S&P, financial covenants similar to those applying to the existing credit facilities will govern the new facilities. The agency said it expects the company to continue to maintain significant covenant cushions.

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