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S&P rates Magellan Health credit investment grade

NEW YORK (AP) -- Standard & Poor's Ratings Services raised its credit rating on Magellan Health Services Inc. to investment grade Thursday, saying the health care management company has little debt and its results should be steady.

S&P raised its rating to 'BBB-' from 'BB+'. The old credit rating was non-investment grade or "junk" status. Analyst Neal Freedman said the Avon, Conn., company should report strong revenue growth and has a flexible financial position. The outlook is "Stable."

"The upgrade reflects our recognition of Magellan's growing revenue base, diversifying business profile, consistent operating performance, and a capital structure that is very conservative for the rating level," said Freedman.

Shares of Magellan Health Services slipped 2 cents to $48.52 in afternoon trading.