Front Porch ends fiscal year with strong ratings

Front Porch Communities and Services ended its fiscal year on March 31, 2025 with strong ratings from Fitch and Standard & Poor’s, external organizations that grade companies from a wide range of industries on financial performance. These grades are used by investors as a measure of the financial stability of an organization when determining whether to issue bonds or offer other financing.

Front Porch is one of only 35 multi-community senior living systems reviewed by Fitch Ratings. The Fitch report, which focuses primarily on Front Porch’s 16 senior living communities, states that “The ‘A’ rating reflects Front Porch’s sound financial performance, solid demand indicators, and diverse and sizable market position since completing its 2022 merger with Covia Communities.”

The A- rating from Standard & Poor’s “reflects our view of Front Porch’s strong enterprise position following the fiscal 2022 acquisition of Covia, which solidified it as one of the largest not-for-profit senior living providers in the U.S. with 16 senior living communities, three active adult communities, and 32 affordable housing communities with total revenue of more than $400 million.”

“In addition, the consolidation 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,” the S&P report continues.

The Ratings Process

Chief Financial Officer Ed Salvador explains that the most recent ratings were based on the audit of Fiscal Year 2024 financials and affirm the ratings provided by the agencies in prior years.

To prepare for the annual ratings review, “The biggest part of the process is completing our annual audit. That involves our entire accounting department as well as our external auditors,” Salvador explains. Following the fiscal year end on March 31^st, the accounting team and auditors work together to provide the information for the audit opinion, which is usually completed by August.

Once the audit is completed, Front Porch begins scheduling meetings with the ratings agencies. During these meetings, Front Porch senior leadership share a presentation on the strategic focus of the organization, its operational trends (such as occupancy and revenue) and its financial performance and budget plans. 

When evaluating Front Porch, the rating agencies look at whether Front Porch is meeting its internal targets. “The obvious parts of the review are: did we do the things that we said we were going to do strategically? Were we able to hit our financial targets that we said we were going to be able to meet?” says Salvador. “The stability of our ratings over the past number of years is reflective of how we address challenges short-term and long-term and how that fits within Front Porch’s strategy.”

How Front Porch compares

As one of the largest nonprofit providers of senior living in the country, Front Porch is in “a unique space,” Salvador says. “We’re one of very few organizations that are rated by two organizations, much less receiving an A and an A-minus from those two organizations.”

Of the 189 not-for-profit senior living organizations rated by Fitch (both single- and multi-site), only 14 received an A rating or higher. Of those, Front Porch is the only one in California. Salvador also notes that Front Porch is not simply being compared against other nonprofits, but against for-profit entities as well. “It’s another stamp of approval,” Salvador says.

“These are dynamic times,” says Front Porch CEO Sean Kelly. “In the past year we built and activated a strategic plan focusing on evolving culture and leadership; improving quality and performance; and preparing for growth. It’s rewarding to have Fitch and S & P recognize past performance and, more so, the value in our plans moving forward.”

To see more Front Porch financial reporting, including our audit and quarterly and annual reports, visit our Finance page.