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.