S&P lifts CRC Health

Standard & Poor's said it raised its corporate credit rating on CRC Health Corp. to B from B-. The outlook is stable.

The agency said it raised its issue-level rating on CRC's credit facility to B+. The recovery rating on the credit facility is 2, indicating the current expectation for substantial recovery of principal in the event of a payment default.

In addition, the agency also raised its issue-level rating on the subordinated debt to CCC+ from CCC. The recovery rating on the notes remains a 6, indicating an expectation for negligible recovery of principal in the event of payment default.

The agency said the upgrade reflects confidence that CRC can maintain existing margins and continue to generate positive free operating cash flows over the near term.

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