Fitch Ratings assigned its "BBB-" rating to Ontario, Calif.-based Prime Healthcare Foundation's proposed $123 million series 2018A and $127 million series 2018B.
The assignment results from Prime Healthcare Foundation's strong liquidity metrics and solid management experience. Fitch also acknowledged the health system's increased debt burden, weak debt coverage and decreased profitability in fiscal year 2017.
The outlook is negative.
Prime Healthcare Foundation is the nonprofit arm of Ontario-based Prime Healthcare Services.