CONSHOHOCKEN, PA — AdaptHealth Corp. (NASDAQ: AHCO) received an upgraded issue-level rating from S&P Global Ratings, a move the agency said reflects stronger recovery prospects for the company’s senior unsecured debt following significant reductions in its term loan obligations.
S&P lifted its rating on the company’s senior unsecured notes to ‘BB-’ from ‘B+’ and raised the recovery rating to ‘4’ from ‘5.’ The change follows $225 million in year-to-date prepayments on AdaptHealth’s senior secured term loan A due 2029. S&P said these reductions improve the likelihood of recovery in a hypothetical default scenario.
CEO Suzanne Foster said the upgrade affirms the company’s ongoing efforts to strengthen its balance sheet and sharpen strategic focus. She noted that since the end of the third quarter of 2024, AdaptHealth has reduced its term loan A balance by $275 million, funded through strong free cash flow and proceeds from divestitures of non-core assets.
“Debt reduction remains among our highest capital allocation priorities, as we believe a strong balance sheet is essential to unlocking and sustaining value for shareholders,” Foster said.
AdaptHealth, a national provider of healthcare-at-home solutions, serves about 4.2 million patients annually across all 50 states. The company operates through four major segments — Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home — supplying home medical equipment, remote monitoring technologies, chronic therapy support, and post-acute services.
The company partners with a broad network of referral sources, including hospitals, pulmonologists, sleep labs, skilled nursing facilities, and clinics. Its footprint includes roughly 630 locations in 47 states, supported by reimbursement from Medicare, Medicaid, and commercial insurers.
The S&P upgrade reflects a more favorable financial trajectory as AdaptHealth continues to reposition its portfolio, reduce leverage, and focus on core patient-centered home-care offerings.
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