S&P rates Acadia facility BB-

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

The agency also said it assigned a BB- rating to the company's new $600 million credit facility comprised of a $300 million revolver and $300 million term loan.

S&P also said it assigned to the debt a recovery rating of 2, indicating 70% to 90% expected default recovery.

The agency also affirmed the B- rating on the senior unsecured notes due 2018 and 2021. The recovery rating on the notes is 6, indicating 0 to10% expected default recovery.

The outlook is stable.

The ratings reflect the company's weak business risk profile based on its exposure to government reimbursement and potential operating and integration challenges as the company continues to rapidly expand its business, said Tahira Wright, an S&P analyst.

The company's aggressive financial risk profile reflects an expectation that debt leverage will range between 4.0x and 4.5x through 2014, Wright said in a press release.

This assumption considers annual acquisition-related spending of $240 million to $280 million, which is expected to be funded from a mix of debt and equity offerings, the analyst said.

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