Tenet Healthcare expects non compliance with leverage ratio in second or third quarter

By Sara Rosenberg

New York, Jan. 28 - Tenet Healthcare Corp. anticipates exceeding its leverage ratio covenant under the $1.2 billion bank credit agreement during the second or third quarter of 2004 based on an expected performance decline during the year.

The Santa Barbara, Calif., healthcare services company has about $200 million of letters of credit outstanding under its credit facility and no cash borrowings outstanding.

"Throughout our recent challenges, Tenet's bank group has been supportive of our efforts to turn around the company," said Stephen D. Farber, chief financial officer, in a company news release. "They understand the underlying value of our core hospitals, and we expect to work constructively with them in the coming months to address covenant compliance and any other concerns."

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