GEO - GEO Group stock falls after S&P downgrades credit rating further into junk

GEO Group (GEO) slides 1.6% after S&P Global Ratings downgrades its credit rating further into junk territory as weaker operating conditions and "unsupportive capital markets" limits the company's refinancing options.Early in his administration President Biden ordered the Justice Department to not renew contracts with privately run prisons.S&P Global lowered its issuer rating on GEO to CCC+ (seven levels below investment grade) from B after the prison operator said it hired advisers to assess alternative for its capital structure.During, its earnings call on May 10, GEO Chief Financial Officer Brian Evans said the company hired Lazard as a financial adviser and Skadden, Arps as legal advisers to review capital structure alternatives.S&P sees the company's dividend suspension and drawdown of all of its available revolving credit, combined with low debt trading prices, "onerous 2024 debt maturities", and challenging credit and capital market access, as a "likely prelude to a debt transaction that we could

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GEO Group stock falls after S&P downgrades credit rating further into junk