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Prospect News home > News index > List of issuers G > Headlines for GEO Group, Inc. > News item |
S&P gives BB+ to GEO revolver, trims unsecured notes
Standard & Poor’s said it assigned its BB+ issue-level rating to the GEO Group Inc.’s proposed new $900 million revolving credit facility due 2019. The recovery rating is 1, indicating an expectation for very high (90%-100%) recovery in the event of a payment default.
S&P said its BB- corporate credit rating and BB+ senior secured debt rating are unchanged. The outlook is stable.
However, the agency is lowering the issue-level rating on the company’s senior unsecured debt to B+ from BB-. The recovery rating is now 5, reflecting an expectation for modest (in the higher half of the 10%-30% range) recovery in the event of a payment default.
S&P said the downgrade of the unsecured debt reflects the incremental upsize in the revolving credit facility that will increase the senior secured debt claims and leave less value available to the unsecured claims.
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