S&P revises Aveanna outlook to stable

S&P said it changed its outlook for Aveanna Healthcare LLC to stable from positive and affirmed all its ratings, including the B- rating on its revolver. The 3 recovery ratings on its loans are unchanged.

“The stable outlook reflects our expectation for only a modest expansion in the company's pediatric private duty nursing (PDN) and home health segments over the next 12 months, which it will supplement with tuck-in acquisitions. However, we forecast that the company's profitability will continue to be burdened by ongoing staffing shortages and wage pressures,” the agency said in a press release.

The agency said it forecasts Aveanna’s S&P Global Ratings-adjusted debt to EBITDA will climb to about 10x in 2022 and 2023, compared with its previous estimate for 7.5x, and sees it reporting free operating cash flow deficits in both years.

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