Moody’s moves Confluent view to stable

Moody's Investors Service said it revised Confluent Health, LLC's outlook to stable from positive and affirmed its B3 corporate family rating, B3-PD probability of default rating and B3 ratings on the senior secured first-lien credit facilities including the revolving credit facility, first-lien term loan, and delayed-draw first lien term loan.

“The stabilization of the outlook reflects Moody's expectation that Confluent's financial leverage will remain elevated over the next 12 to 18 months. This reflects the company's continued aggressive growth strategy and ongoing industry-wide labor pressure. While Confluent has ramped up hiring of physical therapists in recent months, Moody's expects wage inflation and industry-wide labor shortages will remain a headwind in the deleveraging process,” the agency said in a press release.

Moody’s noted Confluent’s debt to EBITDA was 6.3x on June 30 and its forecasts leverage to stay above 5.5x over the next 12-18 months.

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