S&P gives B+ to GEO notes

Standard & Poor’s said it assigned its B+ rating to the GEO Group Inc.’s proposed $250 million senior unsecured notes due 2024. The recovery rating is 4, indicating an expectation that lenders could expect average (30%-50%) recovery in the event of a payment default or bankruptcy.

The B+ corporate credit rating and BB senior secured issue-level ratings remain unchanged. The outlook is stable.

S&P said the ratings reflect the company’s narrow geographic and business focus, low industry growth prospects, and high customer concentration with certain federal and state governments, mitigated by its participation in an industry with high barriers to entry and good customer contract retention rates.

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