S&P rates Tenet notes CCC+

Standard & Poor's said it assigned a CCC+ rating to Tenet Healthcare Corp.'s proposed $600 million senior unsecured notes.

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

The notes will be sold pursuant to Rule 144A under the Securities Act.

Tenet will use the proceeds for general corporate purposes and to repay existing senior unsecured indebtedness.

The rating on the notes is two notches below the company's B corporate credit rating and the same as the existing senior unsecured ratings.

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, S&P said.

Tenet operates in several large, competitive markets, the agency added.

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