S&P affirms GEO

Standard & Poor's said it said that it affirmed its BB+ senior secured debt rating on GEO Group Inc.'s proposed $100 million add-on to its revolving credit facility.

The facility is expected to increase from $150 million to $250 million depending on market demand, the agency said, noting that the upsized revolving credit facility and term loan B facility are rated BB+ with a recovery rating of 1, indicating expectations of very high recovery in the event of a payment default.

S&P said it also affirmed the company's BB- corporate credit and BB- senior unsecured note ratings.

However, the agency said it revised the unsecured note recovery rating from 3 to 4.

The outlook is stable.

According to S&P, the ratings on GEO reflect the company's narrow business focus in an industry that is subject to social and political policy changes, customer concentration, a highly leveraged financial profile, and substantial capital-expenditure program during an extremely challenging capital market environment.

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