S&P gives Tenet notes CCC+

S&P said it assigned its CCC+ rating to Tenet Healthcare Corp.’s proposed unsecured notes due in 2028. The recovery rating is 6, the same as for the existing unsecured debt, indicating S&P’s expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

The company intends to use the proceeds to repay its 8 1/8% unsecured notes due 2022. “While the transaction will increase leverage by a very small, insignificant amount, we view this increase as offset by the likely benefit from lower interest expense,” S&P said in a press release.

Tenet’s B long-term issuer credit rating and all issue-level ratings on Tenet are unchanged, the agency said.

The outlook is stable.

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