S&P ups Acadia loans & notes, rates notes B

Standard & Poor's said it affirmed its B+ corporate credit rating on Acadia Healthcare Co., Inc.

The outlook is stable.

At the same time, the agency assigned a B issue-level rating to the new $300 million senior notes due 2022 and lifted its ratings on the company's existing senior notes to B from B-. The recovery rating on the senior notes was revised to 5 from 6, indicating modest (10%-30%) recovery in the event of payment default.

S&P also raised our ratings on the company's revolver and term loan A to BB from BB-. The recovery rating on the senior secured facility was revised to 1 from 2, indicating very high (90%-100%) recovery in the event of payment default.

"The ratings on Acadia continue to reflect its exposure to government reimbursement, concentration in the behavioral health field, and potential operating and integration challenges as the company continues to rapidly expand its business, which results in our "weak" business risk profile assessment," S&P credit analyst Tahira Wright said in a news release.

"The acquisition of PiC, the second-largest private behavioral health company in the U.K. further diversifies the company's payor mix and geographic diversity which modestly complements Acadia's overall business risk profile."

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