S&P Drops Tenet Ranking From BB- to B+

Tenet Healthcare’s secured debt rating has been changed from ‘BB—’ to ‘B+ by Standard & Poor’s Rating Services.

The corporation plans to dispatch $500 million senior secured notes due 2020 and $300 million of unsecured notes due 2020 to settle outstanding debt and handle other issues, according to Reuters.

S&P’s rating of Tenet reflects the belief that the company will maintain a rigorous and solid financial liability profile; however, Tenet does not maintain S&P’s preffered level of stability concerning financial liability.

Still optimistic, S&P says the rating “reflects our expectation that the hospital company’s revenues in 2012 will increase by about 4 percent, compared with reported revenue in 2011. This estimation includes our assumption of a 3 percent organic growth rate, and one-time revenue recognition of a global Medicare legal settlement.”