Prime Healthcare Services Receives Universal Credit Rating Upgrades from Fitch, Moody's and S&P

Prime Healthcare has received upgrades from Fitch, Moody's, and S&P, citing improved EBITDA and margins, reduced reliance on temporary labor, and successful integration of underperforming hospitals. The upgrades reflect Prime's improved financial performance and strategic growth, including the acquisition of six Illinois hospitals from Ascension Health Alliance.

Prime Healthcare Services, Inc. has recently received upgrades to its credit ratings from Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings. The upgrades reflect the company's improved financial performance, strategic growth, and operational initiatives [1].

Fitch Ratings upgraded Prime Healthcare's senior secured notes to 'B+', while Moody’s upgraded the company’s corporate credit rating to B2. S&P Global Ratings affirmed the credit rating and raised the outlook to positive [1]. These upgrades are driven by several factors, including improved EBITDA and margins, reduced labor costs, successful hospital integrations, and geographic diversification [1].

Prime Healthcare's recent expansion into the Chicago market with six Illinois hospitals from Ascension Health Alliance has also contributed to the upgrades. The company has successfully integrated these hospitals, which were previously underperforming, and has reduced its reliance on temporary labor [1]. The company’s geographic concentrations will decrease materially as it integrates the six Illinois hospitals acquired from Ascension Health Alliance [1].

The upgrades come after Fitch Ratings' April 2025 A- upgrade for Prime Healthcare Foundation’s not-for-profit hospitals, the third in four years [1]. Prime Healthcare's strong financial performance aligns with its national recognition for clinical excellence, health equity, and value [1].

Prime Healthcare, one of the largest health systems in the United States, operates 51 hospitals in 14 states and more than 360 outpatient locations, with over 57,000 staff and affiliated physicians dedicated to providing the highest quality, value-based healthcare [1]. The company's continued focus on delivering exceptional care and advancing clinical outcomes has positioned it for sustainable, long-term success [1].

In contrast, Prime Medicine, Inc. (PRME) reported a quarterly loss of $0.41 per share, missing the Zacks Consensus Estimate by a significant margin. The company's revenues for the quarter ended June 2025 were $1.12 million, falling short of the Zacks Consensus Estimate by 59.6% [2]. Despite the recent earnings surprise, Prime Medicine, Inc. shares have added about 39.4% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [2].

The outlook for Prime Medicine, Inc. remains uncertain, with the company's earnings outlook expected to change following its recent earnings report. The current consensus EPS estimate is -$0.29 on $2.59 million in revenues for the coming quarter and -$1.30 on $7.74 million in revenues for the current fiscal year [2].

References:

[1] https://www.businesswire.com/news/home/20250812356264/en/Prime-Healthcare-Services-Inc.-Receives-Universal-Credit-Rating-Upgrades-from-Fitch-Moodys-and-SP

[2] https://finance.yahoo.com/news/prime-medicine-inc-prme-reports-131002990.html