WeightWatchers’ Restructuring Risk Spurs S&P Rating Cut to CCC

The odds of WW International Inc. defaulting in the next year are rising, according to S&P Global Ratings, which downgraded the company formerly known as WeightWatchers one notch to CCC.

Diet culture has been on the decline as a new generation of weight loss shots soar in popularity. That’s put WW in danger of restructuring its $1.4 billion debt pile, the ratings firm said.

“A return to revenue growth is unlikely over the near term due to the secular decline and competitiveness of the weight loss industry and its diminished brand recognition, particularly with younger people,” according to an S&P ...