Fitch upgraded Ontario, Calif.-based Prime Healthcare’s rating to “A-” from “BBB+.”
The upgrade is based on Prime’s continued improvement in operating results in 2024 and “very strong unrestricted balance sheet resources compared to its debt position,” Fitch said in an April 2 report. Fitch expects operations to remain positive over time, which should support further liquidity growth.
The A- rating is supported by a “very strong” financial profile assessment, indicating good recovery in Fitch’s stress case scenario, according to the report. Despite the strong financial profile assessment, the A- rating is balanced by Prime’s weaker revenue defensibility, which includes a higher Medicaid and self-pay base, and a midrange operating risk assessment.
Prime has a stable outlook at its new rating.
