Moody's affirms GEO

Moody's Investors Service said it affirmed The GEO Group, Inc.'s Ba3 corporate family rating, Ba3 senior secured credit facility and B1 senior unsecured notes.

According to Moody's, this rating affirmation reflects GEO Group's plan to acquire Correctional Services Corp. using cash and debt.

The transaction will further consolidate the private corrections industry, a plus for GEO Group, the agency noted.

Moreover, while GEO Group's credit profile will be modestly weakened by the leveraged purchase of CSC, the greater sector leadership provided by the transaction and some operating cost savings are counterbalances, and over the intermediate term Moody's said it expects GEO Group to reduce its leverage.

The outlook is stable.

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