S&P puts GEO on watch

Standard & Poor's said it placed GEO Group Inc.'s BB- corporate credit rating on CreditWatch with negative implications.

"We placed the ratings on CreditWatch negative to reflect the company's more aggressive financial policy given its proposed debt-financed acquisition of BI Inc," S&P analyst Brian Milligan said in a statement.

S&P said it estimates that GEO's pro forma adjusted debt-to EBITDA ratio will rise to about 4.9x from 4.1x if the acquisition closes according to the company's proposed capital structure.

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