Moody's upgrades Wellpath

Moody's Investors Service said it lifted Wellpath Holdings, Inc.’s ratings, including the corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD. The agency also raised the company's senior secured first-lien bank credit facilities to B1 from B2 and senior secured second-lien term loan to Caa1 from Caa2.

“The upgrade of the corporate family rating to B2 reflects meaningful improvement in Wellpath's performance over the last several years, reflected in a substantial reduction in financial leverage (5.5x as of March 31, 2021 on Moody's adjusted basis). Moody's expects modest improvement in metrics supported by mid-single digit organic growth and reduction in non-recurring expenses, over the next 12-18 months. The upgrade also reflects Moody's expectations of sustained good liquidity, including healthy free cash flow generation in excess of $50 million per annum,” the agency said in a press release.

The outlook remains stable.

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