AdaptHealth’s debt reduction efforts lead to upgrade
By HME News Staff
Updated 11:00 AM CST, Tue November 18, 2025
CONSHOHOCKEN, Pa. - AdaptHealth has announced that S&P Global Ratings has recently upgraded the issue-level rating on the company’s senior unsecured debt to “BB-” from “B+” and revised its recovery rating to “4” from “5.” S&P highlighted that the upgrade follows $225 million of year-to-date prepayment of its senior secured term loan A due in 2029. This, S&P said, increases recovery prospects for AdaptHealth’s unsecured notes in the rating agency’s hypothetical default scenario. “S&P Global Rating’s upgrade is an important recognition of the deliberate actions we are taking to strengthen our balance sheet, improve our risk profile, and increase our financial flexibility,” said Suzanne Foster, CEO of AdaptHealth. “Since the end of the third quarter of 2024, we have reduced the balance of our term loan A by $275 million, funded by our strong free cash flow generation and by proceeds from dispositions of non-core assets to sharpen our strategic focus. 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.” AdaptHealth recently announced that it has signed a new capitated agreement with a major health insurer, a move that CFO Jason Clemens said reflects the company’s broader strategy to expand its business through these contracts. In the third quarter, AdaptHealth reported net revenue of $820.3 million compared to $805.9 million, a 1.8% increase year over year.
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