S&P assigns ratings to Magellan Health

Standard & Poor's said it assigned its B+ counterparty credit, senior secured debt, and senior unsecured debt ratings to behavioral health care company Magellan Health Services Inc.

Rated B+ are the company's $230 million bank facility due Aug. 15, 2008 and $241 million 9.375% notes due Nov. 15, 2008, S&P said on its Web site.

The outlook is stable.

S&P said it took this rating action in connection with Magellan's emergence from bankruptcy effective Tuesday. The ratings are supported by S&P's September analysis of the company's plan of reorganization, which S&P believes has been substantially adopted in connection with Magellan's emergence from bankruptcy.

"Magellan's key near-term challenges will include establishing a more stable and consistent earnings stream, fully implementing its operational improvement plan initiatives, and improving the quality of its balance sheet," said S&P credit analyst Joseph Marinucci.

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