S&P rates Tenet notes B+, CCC+

Standard & Poor's said it lowered its issue-level rating on Tenet Healthcare Corp.'s senior secured term debt to B+ from BB-.

The agency revised the recovery rating on its senior secured debt to 2, indicating an expectation for substantial recovery for lenders in the event of payment default, from 1. S&P said the revision of the recovery rating reflects its view of reduced recovery prospects for the term loan because of the increased amount of senior secured debt.

At the same time, the agency said it assigned the new senior secured notes an issue-level rating of B+ with a 2 recovery rating. The agency also assigned the new senior unsecured notes an issue-level rating of CCC+ with a 6 recovery rating.

All other existing ratings, including the B corporate credit rating, are unchanged. The outlook is stable.

"The B rating on Tenet Healthcare Corp. is based on Standard & Poor's Ratings Services' assessment of the company's business risk profile as weak, reflecting significant reimbursement risk and a hospital portfolio with some concentration risk," said S&P credit analyst David Peknay in a news release.

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