S&P affirms GEO

Standard & Poor's said it affirmed its existing BB- corporate credit rating on The GEO Group Inc.

Also, the agency said it affirmed its BB bank loan rating and 1 recovery rating on GEO's senior secured debt.

In addition, S&P said it placed its B ratings on the company's senior unsecured and preliminary senior unsecured shelf debt on CreditWatch with positive implications.

At the same time, S&P added it revised its outlook on GEO to stable from negative.

The outlook revision reflects the agency's expectation that credit protection measures will strengthen following the company's announcement that it plans to offer 4.75 million shares of its common stock in an underwritten public offering and apply $200 million of the expected proceeds from the issuance towards debt reduction.

According to S&P, the ratings on GEO reflect the company's narrow business focus, customer concentration and leveraged financial profile while these factors are somewhat mitigated by the company's strong market position in the highly regulated U.S. private correctional facility management industry, as well as favorable demographic trends.

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