Fitch revised Ontario, Calif.-based Prime Healthcare Services’ outlook to positive and affirms its “B” rating.
The revised outlook reflects Fitch’s expectation that expanded free cash flow will fund revolver debt reduction and keep EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) leverage at or modestly below 3.0x in the near term, the rating agency said in an Aug. 6 report.
Fitch expects EBITDAR leverage to fall to 2.7x by the end of 2026 and just below 2.5x by the end of 2027, down from 3.0x at the end of 2025 and above 5.0x previously. The agency cited labor cost efficiencies, including reduced reliance on temporary staffing, as a key driver of margin improvement.
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