S&P might lower GEO Group

S&P said it placed its ratings, including the BB- corporate credit rating, on GEO Group Inc. on CreditWatch with negative implications.

"The CreditWatch placement follows the DOJ's plan to reduce – and ultimately end – the use of private prisons to house the federal prison population," S&P analyst Brennan Clark said in a news release.

"We currently believe these contemplated reductions will occur at the BOP, which will likely decline to renew expiring contracts over the next several years and absorb all inmate populations back into their own facilities."

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