S&P trims WW International

S&P said it lowered its ratings for WW International Inc. to CCC+ from B- and its senior secured debt to B- from B. The 2 recovery rating on the debt is unchanged, indicating substantial recovery (70%-90%; rounded estimate: 70%) in default.

“In 2023, WW's S&P Global Ratings-adjusted EBITDA declined to about $115 million, from $206 million in 2022, which resulted in S&P Global Ratings-adjusted leverage of around 13.2x and S&P Global Ratings-adjusted EBITDA interest coverage of about 1.1x. The company's performance was weaker than we expected due to an unfavorable shift in its sales mix (toward digital and away from workshop), increased promotional spending, and higher-than-anticipated restructuring costs,” S&P said in a statement.

The agency said it forecasts WW's S&P Global Ratings-adjusted leverage will cling above 10x while EBITDA interest coverage remains in the low-1x area over the next 12 months.

The outlook is negative.

© 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.