S&P: Psychiatric Solutions unaffected

Standard & Poor's said the ratings and outlook on Psychiatric Solutions Inc. (B+/negative/--) would not be affected by the company's addition of 222 inpatient beds through two asset purchases.

While the company has already exceeded its stated strategy of purchasing four to six facilities per year, Psychiatric Solutions will likely continue to look for acquisition opportunities in 2004, S&P said.

The company has used all of the liquidity generated through a $48 million equity offering in December 2003. Thus, S&P remains concerned that the company will finance its potentially more aggressive growth strategy with debt while contending with a much-enlarged operating base.

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