S&P cuts Acadia, rates notes CCC+

Standard & Poor's said it affirmed its B corporate credit rating on Acadia Healthcare Co. Inc. following a series of transactions that increased debt levels to fund its acquisitive growth strategy.

The outlook is positive.

At the same time, S&P assigned the company's new $150 million unsecured notes due 2021 a CCC+ issue-level rating with a recovery rating of 6.

The agency also revised its recovery rating on the company's $150 million senior unsecured notes due 2018 to 6 and subsequently lowered its issue-level rating on this debt to CCC+ from B- and removed the rating from CreditWatch, where it was placed with negative implications on Dec. 5.

The ratings on Acadia reflect its "weak" business risk and "aggressive" financial risk profiles, S&P said. The weak business risk profile incorporates the operating and integration challenges Acadia faces due to its rapidly expanding business and its exposure to uncertain third-party reimbursement.

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