S&P boosts GEO

Standard & Poor's said it raised its senior unsecured debt rating and preliminary senior unsecured shelf debt rating on The GEO Group Inc. to B+ from B.

These ratings were removed from CreditWatch, where they were placed with positive implications on March 15, following the company's announcement that it would offer 4.75 million shares of its common stock in an underwritten public offering and its intention to apply proceeds from the issuance towards debt reduction, the agency said.

At the same time, S&P said it affirmed its BB- corporate credit rating, BB bank loan rating and 1 recovery rating on GEO's senior secured debt.

The outlook is stable.

The agency added that 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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