Ontario, Calif.-based Prime Healthcare’s rating was upgraded to “B2” from “B3” by Moody’s.
The upgrade reflects material improvement in the health system’s EBITDA and EBITDA margin in recent quarters as it cut its temporary clinical labor utilization and expenses, reduced leasing costs and optimized underperforming hospital operations, Moody’s said in a July 16 report.
Moody’s also said that the rating was supported by its good scale and track record of turning around underperforming or distressed hospital assets.
Prime has a stable outlook at its new rating.
In April, Prime’s rating was upgraded to “A-” from “BBB+” by Fitch Ratings.
