Fitch assigns Tenet notes BB, B-

Fitch Ratings said it assigned a BB/RR1 rating to Tenet Healthcare Corp.'s proposed $1.8 billion senior secured notes and a B-/RR5 rating to the proposed $2.8 billion senior unsecured notes.

The ratings remain on negative watch.

Fitch placed Tenet's ratings on Negative Watch in June following the company's announcement that it will acquire Vanguard. The ratings apply to about $5.6 billion of debt as of June 30.

The proceeds will be used to fund Tenet's planned acquisition of Vanguard Health Systems. Tenet plans to acquire Vanguard in an all-cash deal for a total consideration of $4.7 billion, including the purchase of Vanguard's public equity for $1.7 billion and the assumption of $3 billion of Vanguard's outstanding debt. Pending regulatory approvals, the transaction is expected to close during the fourth quarter of 2013.

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