Sep. 2 at 7:50 PM
Moody’s Ratings upgraded Aveanna Healthcare LLC’s corporate family rating to B3 from Caa1 and revised the outlook to stable from positive, citing stronger business performance and lower leverage over the past year.
Moody’s also assigned a B3 rating to the proposed senior secured credit facilities, including a $ 250M revolver due 2030 and a
$1.33B term loan due 2032, and raised the company’s speculative-grade liquidity rating to SGL-2 from SGL-3.
Aveanna’s adjusted debt-to-EBITDA ratio stood at ~6.0x for the 12 months ended June 28, 2025, and is expected to remain stable over the next 12–18 months. Improvement was driven by better execution and higher reimbursement rates offsetting labor costs.
Moody’s added that the rating reflects Aveanna’s high leverage, geographic concentration in California, Texas, and Pennsylvania, and reliance on Medicaid (≈81% of revenue), exposing it to potential reimbursement cuts.
$AVAH