Front Porch maintains strong financial rating from Fitch, S&P

Reports note organization's "solid financial performance," "strong enterprise position"

GLENDALE, Calif., Dec. 19, 2023 /PRNewswire/ -- Fitch Ratings announced that Front Porch Communities and Services has maintained its A rating with a stable outlook and Standard and Poor's affirmed its 'A-' rating on bonds issued on behalf of Front Porch.

"The 'A' rating continues to reflect Front Porch's solid financial performance, stable demand indicators, and diverse and sizable market position since completing its 2021 merger with Covia Communities," Fitch reported. "Financial results in fiscal 2023 provided solid coverage of a moderate debt burden and manageable capital spending should allow for continued improvement in balance sheet resources over time."

S&P's rating reflects Front Porch's strong enterprise position following the acquisition of Covia, the report stated. The consolidation of Front Porch and Covia "expanded and diversified Front Porch's footprint into desirable markets, increased scale, and should yield longer term operational efficiencies as management continues with its strategic assessment and improvement plan."

Front Porch CEO Sean Kelly responded to the reports, saying, "We were very transparent with the analysts about what we are up to, emphasizing elements of our strategic planning work that require us to continue to invest in the creation of this 'new' Front Porch."

Fitch also noted that Front Porch's rating could be upgraded or improved with continued successful integration of the organization as the two non-profit entities develop into the new Front Porch. According to their analysis, "Fitch expects that operating results will somewhat improve over the medium term as Front Porch continues to benefit from economies of scale and efficiencies post-merger."

"Results always matter and next year we should expect to bear some fruit from some of our foundational systems and culture work," said Kelly.

S&P noted that the organization has an "Effective and experienced management team that has demonstrated a willingness and ability to respond proactively to changing business conditions." The team includes leaders from both merged organizations as well as new members from inside and outside the senior living sector.

The positive affirmation of these ratings stands in contrast with the outlook for the Aging Services sector overall. Kelly added, "It's a reminder that we have the capacity here at Front Porch to move forward, building this organization from a position of strength."

Front Porch is a dynamic not-for-profit organization, dedicated to empowering individuals to live connected and fulfilled lives through community and innovation. In support of this vision, Front Porch provides high quality, accessible and affordable human services through senior living communities, affordable housing communities and other programs and services throughout the United States.

Media Contact: Laura Darling, Vice President of Communications
Front Porch Communities and Services
[email protected]
818-482-7597

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SOURCE Front Porch