Fitch Ratings has upgraded Prime Healthcare Foundation's rating on a series of bonds from "BBB" to "BBB+" with its rating outlook at stable.
The Ontario, Calif.-based health system's upgrade is based on material improvement in 2023 operating results as well as solid liquidity and moderate leverage, Fitch said in an April 10 news release shared with Becker's.
The stable outlook is supported by Fitch's expectation that Prime's operating EBITDA margins are gradually returning to a 6% to 7% or better range and the health system maintaining its strong balance sheet ratios.
Prime has not ruled out future hospital acquisitions, but its current strategy is focused on strengthening fundamentals through vertical integration of existing assets, supported by ambulatory investment, according to Fitch.