Moody’s upgrades GEO, rates loans B1

Moody’s Ratings said it upgraded GEO Group Inc.’s senior secured bank credit facilities to B1 from B2 and assigned B1 ratings to its planned senior secured first-lien revolver and term loan facilities.

The agency concurrently raised GEO’s corporate family rating to B2 from B3, senior unsecured notes to B3 from Caa1 and senior unsecured shelf to (P)B3 from (P)Caa1.

“The upgrade reflects GEO's improvement in contract renewal rates, greater revenue diversity due to successful growth in its electronic monitoring business, and reduction in debt and financial leverage. And while Moody's acknowledges the reduced cost of capital and debt maturity extensions from its proposed refinancing transactions, the upgrade is not contingent upon completion of this transaction,” the agency said in a press release.

The outlook is stable.

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