S&P gives Healthways, loan BB

Standard & Poor's said it assigned its BB corporate credit rating to Healthways Inc.

The outlook is stable.

At the same time, the agency said it assigned its loan and recovery ratings to the Healthways' proposed $400 million senior secured revolving credit facility due in 2011 and $200 million senior secured term loan B due in 2013, noting that the secured financing was rated BB with a recovery rating of 2.

"The rating on Healthways reflects the company's narrow business focus, surmountable barriers to competitive entry and revenue and channel concentration," said S&P credit analyst Jesse Juliano.

"These risks are partially offset by the strong demand for Healthways' services (which has reduced customer concentration over the past several years), their positive momentum in the disease management business and the company's historically conservative financial profile."

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