S&P revises Adapthealth outlook to negative; rtg affmd

S&P Global Ratings has affirmed AdaptHealth Corp.’s credit rating while revising its outlook to negative, reflecting ongoing concerns about the company’s financial trajectory despite recent deleveraging efforts. The rating agency upgraded the issue-level rating on AdaptHealth’s senior unsecured debt to ‘BB-’ from ‘B+’ in November 2025, citing the company’s $225 million prepayment of its senior secured term loan A, which improved recovery prospects in a hypothetical default scenario. However, the negative outlook signals that further downgrades could occur if financial conditions deteriorate or if the company’s deleveraging progress slows.

AdaptHealth’s CEO, Suzanne Foster, emphasized that the company has reduced its term loan A balance by $275 million since the end of Q3 2024, funded by free cash flow and asset dispositions. While these actions have strengthened the balance sheet, S&P’s negative outlook underscores the need for continued financial discipline and performance to maintain investor confidence.