S&P assigns GEO Group notes BB-

Standard & Poor's said it assigned its issue-level rating to GEO Group Inc.'s proposed eight-year $250 million senior unsecured notes due October 2017. The proposed notes are rated BB-, and the recovery rating is 4.

"These ratings are based on preliminary terms and are subject to review upon receipt of final documentation. Given that its estimated recovery is close to 30%, any subsequent increase in debt could result in a lower recovery rating and senior unsecured issue-level rating," said credit analyst Jerry Phelan.

S&P added that it expects proceeds from the proposed issuance to be used to finance the tender offer for GEO's 8.25% $150 million notes due 2013 and for general corporate purposes, including paying down a portion of debt outstanding under the company's revolving credit facility.

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