A fighter is considered active in a weight class if they fight within 2 pounds of the weight limit (although a Championship must be defended at or under the weight limit). Walters managed to get down to 127 so he still has until June next year before the inactivity clause kicks in.
https://boxranks.wordpress.com/ratings-policy/
I agree he is big for the weight class but according to his adviser Robert Mittleman he is staying at Featherweight for now.


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