S&P gives Acadia notes B-

Standard & Poor's said it issued its B corporate credit rating to Acadia Healthcare Inc. The outlook is stable.

At the same time, the agency said it issued its B- issue-level rating on Acadia's $150 million senior unsecured note. The recovery rating on the note is 5, indicating an expectation of modest recovery of principal in the event of payment default.

"The low speculative-grade rating on Acadia reflects the company's aggressive growth strategy and highly leveraged financial risk profile," said S&P credit analyst Tahira Wright in a news release.

S&P said it characterizes Acadia's business risk profile as "weak" because of the challenges it faces in controlling its rapid expansion from a small base and its exposure to uncertain third-party reimbursement that accounts for about three-quarters of its revenue.

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