S&P ups Tenet Healthcare outlook to stable

Standard & Poor's said it revised its outlook on Tenet Healthcare Corp. to stable from negative.

The B corporate credit rating on the company was affirmed, the agency said, noting that the outlook revision reflects Tenet's recently improved financial results and better prospects that its financial profile will likely be maintained at a level consistent with the current rating.

Contributing factors include much better managed care pricing patterns, better expense management, an asset divestiture plan, and the elimination of key litigation risk, S&P added.

At the same time, the agency said it lowered its rating on Tenet's senior unsecured notes to CCC+ from B.

S&P added that the low-speculative-grade ratings on Tenet reflect the company's weak operating performance, cash flow and financial profile over the past several years.

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