TEXT-S&P rates Tenet Healthcare notes 'B+'

Tue Jan 22, 2013 11:53am EST

Jan 22 - Standard & Poor's Ratings Services today assigned Dallas-based
Tenet Healthcare Corp.'s proposed $850 million senior secured notes due
2021 its 'B+' issue-level rating (one notch above the 'B' corporate credit
rating on the company). We also assigned the notes a recovery rating of '2',
indicating our expectation for substantial (70% to 90%) recovery for lenders in
the event of a payment default. The company plans to use the proceeds to
refinance existing debt.

The corporate credit rating on Tenet is 'B' and the outlook is stable. The 
rating reflects our view of the company's "weak" business risk profile, 
reflecting significant reimbursement risk and a hospital portfolio with some 
concentration risk in key markets that we view as competitive. We view Tenet's 
financial risk profile as "aggressive," reflecting leverage near 5x as well as 
the company's ongoing inability to generate free cash flow. We expect 
difficult industry challenges in 2013 to contribute to a low-single-digit 
organic growth rate and a small reduction in Tenet's margins.


RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008
     -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008
 
RATINGS LIST

Ratings Unchanged

Tenet Healthcare Corp.
 Corporate Credit Rating        B/Stable/--

New Rating

Tenet Healthcare Corp.
 Senior Secured
  $850M notes due 2021             B+
   Recovery Rating                 2


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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