Moody's downgrades GEO

Moody's Investors Service said it downgraded GEO Group, Inc.'s ratings, including its corporate family rating and senior unsecured debt ratings to Caa2 from Caa1 and its senior secured credit facility to Caa1 from B3. The speculative grade liquidity rating was changed to SGL-3 from SGL-4 and the outlook revised to stable from negative.

“The rating actions reflect the issuer's execution of a distressed debt restructuring transaction with its credit facility lenders and bondholders in order to avoid a likely eventual default per Moody's definition, and is expected to close in August 2022.

“The outlook revision to stable reflects the issuer's repositioned capital structure, balance sheet and liquidity profile, driven by a reduction in net recourse debt and an extension of near-term maturities,” the agency said in a press release.

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