Fitch rates Tenet notes BB-, B

Fitch Ratings said it assigned a BB-/RR1 rating to Tenet Healthcare Corp.'s $141 million of 6¼% senior secured notes due 2018 and a B/RR3 rating to Tenet's $150 million of 8% senior notes due 2020.

The notes are add-ons to outstanding note issues and proceeds will be used to repurchase mandatory convertible preferred stock, the agency said.

Tenet's issuer default rating is currently B-. The outlook is positive.

While Tenet's liquidity and financial flexibility have recently improved, the company's ability to generate positive free cash flow remains strained, Fitch said.

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