Moody's Ratings confirmed Option Care Health, Inc.'s (NYSE:OPCH) Ba3 Corporate Family Rating and simultaneously revised the outlook to positive from stable on Thursday. The agency also affirmed the company's Ba3-PD Probability of Default Rating, its Ba2 senior secured first lien bank credit facility ratings, and its B2 senior unsecured notes rating. The speculative grade liquidity rating remained at SGL-1.
Moody's said the uplift in outlook reflects expectations that Option Care will sustain revenue growth and generate strong free cash flow, leading to a steady reduction in financial leverage. The rating agency projects that Option Care's debt-to-EBITDA will improve to about 2.4x to 2.7x over the next 12 to 18 months, assuming there are no significant debt-funded share buybacks or acquisitions.
In explaining the Ba3 Corporate Family Rating, Moody's pointed to Option Care's position as the largest independent infusion provider, noting the company generates more than $5.6 billion in revenue. The home infusion services sector, the agency said, benefits from long-term growth dynamics, with treatment in the home generally seen as the patient-preferred and lowest-cost setting.
At the same time, Moody's flagged several constraints on the rating. These include the company's aggressive share repurchase plans, pressures in the reimbursement landscape including uncertainty tied to Medicaid, and competitive challenges from large, vertically integrated health care firms that own home infusion operations.
Moody's maintained a Speculative Grade Liquidity Rating of SGL-1 for Option Care, reflecting an expectation of very good liquidity over the coming 12 months. The agency cited approximately $233 million in cash reported as of December 31, 2025, together with $396 million available under the company's revolving credit facility, as supporting near-term liquidity.
Option Care operates as the leading independent provider of infusion therapy services delivered in the home and alternate treatment sites. The company serves patients through a national network of more than 190 locations across the United States, offering preparation, delivery, administration and monitoring of medications for conditions that include infections, malnutrition, heart failure, bleeding disorders, autoimmune diseases and other rare conditions.
Context for markets and stakeholders
Moody's affirmation and outlook change will be watched by credit investors, fixed-income analysts and health care sector strategists. The expected leverage reduction could influence bond spreads and the company's borrowing costs over time, while the liquidity assessment may shape short-term working capital and covenant considerations for lenders.