S&P assigns Tenet notes BB-

Standard & Poor's said it assigned Tenet Healthcare Corp.'s proposed issuance of up to $1.0 billion senior secured notes its issue-level of BB-, two notches higher than the B corporate credit rating on the company,

The agency said it also assigned the notes a recovery rating of 1, indicating its expectation of very high recovery for noteholders in the event of a payment default.

The issue-level and recovery ratings on Tenet's existing $1.4 billion senior secured notes and $800 million asset-based lending facility remain unchanged at BB- and 1, respectively, S&P added.

The agency said it also revised its recovery rating on Tenet's various tranches of senior unsecured debt to 6 from 4 while it lowered the issue-level rating on this debt to CCC+ from B.

The revision of the recovery rating on the senior unsecured notes is principally the result of the addition of up to $1 billion of senior secured debt ranking senior to existing senior unsecured debt, S&P said.

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