NEW YORK (Standard&Poor's) Dec. 10, 2010—Standard&Poor's Ratings Services said today that Community Health Systems' (CHS) unsolicited $3 billion offer to acquire Tenet Healthcare Corp. does not yet have clear credit implications for either hospital chain, for a number of reasons. While the addition of Tenet's 50 hospitals could give CHS an industry-leading presence of more than 170 facilities, it also would pose the hurdle of effectively integrating the acquired operations. In addition, although the bid led to a 50% surge in Tenet's stock price, the company now is publicly dismissing this offer, which it privately spurned last month. The proposed transaction also would increase CHS' debt leverage, but not likely to a level that would impair
