Fitch rates Tenet notes BB

Fitch Ratings said it assigned a BB with recovery rating of RR1 rating to Tenet Healthcare Corp.’s $900 million senior secured notes due 2020 and a ‘B-/RR5’ rating to Tenet’s $1.9 billion senior unsecured notes due 2023.

The proceeds will be used to fund the planned acquisitions of a 50.1% ownership interest in United Surgical Partners International and the purchase of Aspen Healthcare, Fitch said, as well as to refinance certain of Tenet’s and United Surgical’s outstanding debt.

Tenet is among the largest for-profit operators of acute care hospitals in the United States and, through the planned acquisition of a majority ownership interest in United Surgical, will become the largest operator of ambulatory surgery and imaging centers, the agency said.

Scale is increasingly important as U.S. health care providers look to drive efficiencies that offset the effects of an overall constrained reimbursement environment, Fitch said.

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