Comprehensive Care Corp.’s $46 million of single-’B’...

Comprehensive Care Corp.’s $46 million of single-’B’ rated convertible subordinated debt has been placed on Standard & Poor’s CreditWatch with negative implications. The implied senior rating is double-’B’-minus. Irvine-based CompCare, which operates alcohol and drug abuse treatment programs in 193 hospitals nationwide, has seen earnings drop in recent years because of increasing competition in the chemical dependency business. For the fiscal year ended May 31, 1988, profit fell 26% to $9 million on revenue of $212 million. Earlier this month, the firm’s board of directors appointed a special committee to evaluate new business strategies, including a possible financial restructuring, asset sale or acquisition by another company. Standard & Poor’s will evaluate the chain’s prospects for improving its operations, especially with respect to restructuring actions.