S&P revises WW view to stable

S&P said it revised WW International Inc.’s outlook to stable from negative and affirmed its ratings on the company, including the B+ issuer rating.

“The company's new subscribers in its digital segment increased 16% year over year in the first quarter ended March 31. Moreover, its subscriber retention rate improved to over 10 months from over nine months a year ago. As U.S. consumer sentiment continues to improve with faster than initially anticipated dissemination of Covid-19 vaccines, first-quarter profitability exceeded our expectations. WW ended the quarter with last-12-months leverage of 4.5x compared to our previous expectation of about 5x,” S&P said in a press release.

As overall revenue returns to growth, S&P said it sees WW ending 2021 with leverage in the low- to mid-4x area.

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