S&P assigns WeightWatchers.com loans B+, B-

Standard & Poor's said it assigned its B+ corporate credit rating to WeightWatchers.com, a subsidiary and exclusive licensee of Weight Watchers International Inc. (BB/positive).

The agency also said it assigned its B+ bank loan rating to the company's $150 million first-lien term loan and a B- bank loan rating to the company's $70 million second lien term loan, with a recovery rating of 5 on both liens.

At the same time, S&P noted it revised its outlook on Weight Watchers to positive from stable while affirming its ratings, including the BB corporate credit rating.

The ratings on WeightWatchers.com reflect the company's highly leveraged capital structure following the share redemption, a narrow business focus and participation in the highly competitive weight-control market, S&P said.

The agency added these factors are somewhat mitigated by the company's fast growing subscription base, strong market position, its exclusive long-term licensing agreement with Weight Watchers, predictable cash flows and favorable demographic trends.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.