Standard&Poor's Ratings Services' rating on Watertown, Mass.-based childcare center operator Bright Horizons Capital Corp. reflects its high debt leverage and modest conversion of EBITDA to discretionary cash flow. We expect credit measures to keep gradually improving over the intermediate term, despite the company's acquisition orientation and high capital spending for new center openings, as a result of relatively steady demand for its services. We view Bright Horizon's business risk profile as "fair" (based on our criteria) because of its position in employer-sponsored centers, some sensitivity of capacity utilization rates to high unemployment, and highly competitive conditions in the fragmented child care business. We view the company's financial risk profile as "highly leveraged" because of its high debt-to-EBITDA ratio,
