S&P: CRC Health to stable

Standard & Poor's said that it affirmed the B- corporate credit rating and all issue-level ratings on CRC Health Corp. and revised the outlook to stable.

S&P assigned a B+ issue rating to the $309 million term loan B-2 due 2015 and to the $63 million extended revolver also due 2015. The recovery rating on the debt is 1, indicating expectations for very high (90%-100%) recovery.

The outlook revised reflects the company's recent amendment to its existing credit agreement, which meaningfully diminishes near-term refinancing risk, the agency said.

The ratings on CRC reflect a vulnerable business risk profile resulting from the discretionary nature of demand for services that are provided by numerous competitors, the agency added.

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