Tenet Healthcare Corporation -- Moody's: Tenet's upsizing of bond offering is credit negative; no impact on ratings

New York, November 17, 2016 -- Moody's Investors Service commented that Tenet Healthcare Corporation's upsizing of its senior secured second lien bond offering is credit negative as it will increase leverage and interest costs. Tenet issued a total of $750 million of 7.5% senior secured second lien notes maturing 2022 on November 16, 2016. This represents an upsize from the $500 million initially announced. The incremental debt increases adjusted leverage by only 0.1 times and brings our expectation of debt to EBITDA at the end of 2016 to about 7.0 times. However, there is no change to Tenet's existing ratings, including the company's B2 Corporate Family Rating or the Ba3 rating on the notes. The rating outlook is negative.

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