Moody's Investors Service has raised Dallas-based Tenet Healthcare's outlook from stable to positive, saying it expects the provider to continue its strong earnings and to improve its cash flow, according to a Wall Street Journal report.
Tenet's profit in the second quarter of 2011 nearly doubled. While Tenet's rating incorporates the expectation it will continue to see improvements from cost-saving measures and capital investments, its B2 bond rating is still five rungs below "investment grade," the report said.
Moody's noted Tenet's bond rating is constrained by the healthcare industry's challenges such as bad debt and weak volume trends.
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Tenet's profit in the second quarter of 2011 nearly doubled. While Tenet's rating incorporates the expectation it will continue to see improvements from cost-saving measures and capital investments, its B2 bond rating is still five rungs below "investment grade," the report said.
Moody's noted Tenet's bond rating is constrained by the healthcare industry's challenges such as bad debt and weak volume trends.
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