Moody's Upgrades Tenet's Outlook To 'positive'

NEW YORK (AP) — Moody's Investors Service upgraded the rating outlook of Tenet Healthcare Corp. to "positive from "stable," citing the hospital operator's reduction of refinancing risk.

Moody's also affirmed the company's 'B3,' or highly speculative, corporate-family and probability-of-default ratings.

"The positive outlook reflects the reduction of refinancing risk given the company's recent capital transactions," Moody's said, in a statement.

On Friday, Tenet said it received $335 million in net proceeds from a previously announced offering of 7 percent convertible preferred stock. The Dallas-based company said it used $315 million of the proceeds to repurchase $300 million worth of outstanding 9.25 percent senior notes due 2015 through a privately negotiated transaction.

Shares of Tenet fell 11 cents to $5.42 in late trading.