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Investing.com -- Moody’s Ratings has downgraded the corporate family rating (CFR) of WW International, Inc. (NASDAQ:WW) from Caa3 to Ca and its probability of default rating (PDR) from Caa2-PD to D-PD. The rating agency also downgraded WW’s senior secured first lien debt ratings, which include a $175 million revolving credit facility due in 2026, a $945 million term loan B due in 2028, and $500 million notes due in 2029, from Caa3 to Ca. Despite these downgrades, the Speculative Grade Liquidity rating remains at SGL-4, and the outlook is stable.
These changes in ratings follow WW’s filing for Chapter 11 bankruptcy protection in Delaware on May 6, 2025.
The downgrade of WW’s ratings is tied to governance considerations due to the company’s high financial leverage and significantly limited debt capital sources, which resulted from weak debt trading prices. These factors led to an unsustainable capital structure and ultimately, the bankruptcy filing.
The downgrade of WW’s PDR to D-PD indicates the company’s default on its debt agreements. This bankruptcy filing came after a period of operational pressures that resulted in an unsustainable capital structure for WW. The Ca ratings on WW’s debt instruments indicate Moody’s perspective on potential recoveries.
The stable outlook is based on Moody’s view that the ratings are appropriately positioned considering expected recoveries.
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