S&P ups Acadia Healthcare

S&P said it raised Acadia Healthcare Co. Inc.’s issuer rating to B+ from B, its senior secured rating to BB from BB- and its unsecured rating to B from B-.

“The upgrade reflects the completion of the sale of its U.K. business, subsequent debt repayment, and the company's public commitment to lower leverage. The repayment of debt will reduce leverage to about 4.5x in 2021. Acadia has explicitly stated its desire to commit to that new established leverage. Furthermore, we do not expect the company to pursue mergers and acquisitions that would raise leverage back above 5x,” S&P said in a press release.

Additionally, the agency placed the secured debt rating on CreditWatch with negative implications and Acadia’s unsecured debt rating on CreditWatch Developing, pending the details of expected debt repayment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.