AdaptHealth Corp. upgraded its credit profile on January 27, 2026 when Moody’s raised the company’s corporate family rating to Ba2 from Ba3 and its senior unsecured notes rating to Ba3 from B1. The upgrade follows a $225 million debt reduction that brought the company’s total debt down from $1.05 billion at the end of 2024 to $825 million at the end of 2025, and a strong free‑cash‑flow generation that has consistently exceeded $150 million in the past two quarters.
The debt‑reduction effort was part of a broader capital‑allocation strategy that included the sale of non‑core assets and the prepayment of a senior secured term loan. Management highlighted that the $225 million prepayment was funded entirely by operating cash flow, underscoring the company’s ability to generate excess cash and reduce leverage. Moody’s cited the improved leverage ratios and the sustained free‑cash‑flow as key reasons for the rating upgrade, indicating confidence in the company’s ongoing financial discipline.
CEO Suzanne Foster emphasized that the upgrade “recognizes the actions we are taking to strengthen our balance sheet, improve our risk profile, and increase our financial flexibility.” She noted that the debt reduction remains a top priority and that the company will continue to focus on strategic asset dispositions and disciplined capital deployment to support future growth initiatives.
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