S&P boosts Cornell Cos.

Standard & Poor's said it raised its corporate credit rating on Cornell Cos. Inc. to B from B-.

At the same time, S&P said it raised its rating on the company's senior unsecured notes to B- from CCC+.

The agency said that the ratings were removed from CreditWatch, where they were placed with positive implications on May 9, reflecting Cornell's sustained improvement in operating performance and stronger financial risk profile.

The upgrade reflects the company's improved operating performance, more favorable industry fundamentals and strengthened credit protection measures, S&P noted.

The outlook is stable.

S&P added that the ratings on Cornell reflect its narrow business focus, limited size, customer concentration and leveraged financial profile while these risks are somewhat offset by favorable demographic trends within the niche private domestic corrections services industry.

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