S&P rates GEO loan BB-

Standard & Poor's said it assigned its BB- rating on The GEO Group Inc.'s new $175 million senior secured credit facility.

At the same time, S&P affirmed its B+ corporate credit and B senior unsecured debt ratings on the company.

On July 14, GEO announced that it is acquiring Correctional Services Corp. (unrated) for $62.2 million in cash, plus the assumption of $124.3 million in Correctional Services non-recourse debt. The acquisition is being funded using a combination of cash on hand and the company's new $175 million senior secured credit facility.

S&P said the ratings on GEO reflect its narrow business focus, limited size, customer concentration, and leveraged financial profile.

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