S&P rates Tenet notes CCC+

Standard & Poor’s said it assigned a CCC+ issue-level rating to Tenet Healthcare Corp.’s proposed $500 million senior unsecured notes due 2019.

The agency also said it assigned a 6 recovery rating, indicating 0 to 10% expected default recovery.

The proceeds will be used for general corporate purposes, repay existing indebtedness and acquisitions, S&P said.

The rating on the notes is two notches below the company’s B corporate credit rating.

The ratings reflect the company’s weak business risk profile highlighted by reimbursement risk and some reliance on its top three states for nearly half of total revenues, the agency said.

Tenet operates in several large markets believed to be competitive, S&P said.

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