S&P rates Tenet notes B+

Standard & Poor's said it assigned a B+ rating to Tenet Healthcare Corp.'s proposed $1.05 billion senior secured notes due 2022 with a 2 recovery rating, indicating 70% to 90% expected default recovery.

This financing, which will refinance the company's senior secured notes due in 2019, is nearly debt leverage neutral and will lower interest rates, S&P said.

The ratings reflect the company's weak business risk profile, highlighted by reimbursement risk and concentration in only three states: Florida, California and Texas, the agency said.

Tenet also operates in several large markets that are competitive, S&P said.

Significant capacity on its revolving credit facility and lack of covenant pressure support its adequate liquidity, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.