S&P gives Tenet convertible preferreds CCC

Standard & Poor's said it assigned its CCC issue-level rating to Tenet Healthcare Corp.'s $345 million of mandatory convertible preferreds.

Net proceeds were used to repurchase $300 million worth of outstanding 9.25% senior notes due 2015, the agency said, adding that the mandatory convertible preferred stock will automatically convert to Tenet common stock on Oct. 1, 2012.

S&P said it views the mandatory convertible preferred issuance as 100% debt for ratings purposes, adding that its corporate credit rating on Tenet is B, reflecting the company's struggles over the past several years with weak operating performance and operating cash outflow and highly leveraged financial position.

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