Dallas-based Tenet Healthcare’s credit rating was upgraded to “BB” from “BB-” by Fitch.
The rating reflects the for-profit system’s improved competitive position, including double-digit revenue growth in its high-margin ambulatory segment, Fitch said in its March 18 report.
Tenet sold 14 hospitals in 2024, which Fitch said helped fund a $2.1 billion reduction in the system’s debt and improved its liquidity.
Fitch expects Tenet to allocate capital prudently, balancing its top objectives of expanding via M&A and de novo development and returning capital to shareholders, with balance sheet management limiting EBITDA leverage to 3.5x.
Through its United Surgical Partners International business, Tenet is the largest operator of ASCs in the U.S. Fitch sees secular tailwinds and continued investment driving at least mid-to-high-single-digit growth in the segment.
As of Dec. 31, Tenet operated 50 acute care hospitals and 132 outpatient centers. USPI held interests in 533 ambulatory surgery centers, including 401 consolidated facilities, and 26 surgical hospitals across 37 states.
Tenet also announced in February that it regained full ownership of revenue cycle management company Conifer Health Solutions after Chicago-based CommonSpirit exited the partnership.
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