Fitch lifts Tenet Healthcare view to stable

Fitch Ratings said it revised Tenet Healthcare Corp.'s outlook to stable from negative and affirmed its issuer default rating at B-, secured bank facility at BB-/RR1 and senior unsecured notes at B-/RR4.

The agency said the stable outlook reflects the increased stability in the business as a result of the increased liquidity provided by a five-year $800 million revolving credit facility obtained in 2006 and a global civil settlement with the U.S. federal government which, along with the previously announced Alvarado and shareholder suit settlements, resolved virtually all of the company's historic legal issues.

Despite these improvements, Tenet continues to experience operating challenges such as declining volumes and weak margins and has among the highest levels of leverage in the industry, with a total adjusted debt-to-operating EBITDA ratio of 6.5x at Dec. 31. Fitch said it believes that 2007 represents a critical year for Tenet to demonstrate sustainable improvements in its core operations.

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