Tenet reported July 24 that it intends to spin off Conifer into a separate publicly traded company by the end of the second quarter of 2021.
This decision is credit negative because it will reduce Tenet’s business diversification and “modestly lower scale,” said Moody’s, “while introducing a level of uncertainty regarding its leverage profile and capital structure.”
Tenet’s current ratings remain unchanged, and Moody’s maintains its stable outlook on the hospital operator.
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