Reuters, 03.01.04,
3:12 PM ET
NEW YORK, March 1 (Reuters) - Moody's Investors Service on Monday cut its ratings
on No. 2 U.S. hospital operator Tenet Healthcare Corp.(nyse: THC - news
- people) deeper into junk, saying the company
may have trouble meeting its cash needs over the next 12 to 18 months.
Moody's cut its senior implied rating on Tenet by one notch to "B2,"
its fifth-highest junk rating, from "B1." The rating agency also cut
Tenet's senior unsecured rating by two notches to "B3," its sixth-highest
junk rating, from "B1." The outlook is negative.
Tenet is facing federal investigations over how it billed Medicare, lawsuits
over claims of unnecessary surgeries and other regulatory issues. The company
said in January that it would sell 27 hospitals, leaving it with just 69, as
it struggles to turn itself around.
Copyright 2004, Reuters News Service
THC 12.25 +
0.23
3/1/04 2:55:00 PM ET