Prison Firm Geo Hit With Third Downgrade in a Year on Debt Talks

Geo Group Inc., one of the largest operators of private detention facilities in the U.S., probably will reach a debt exchange deal with its lenders that would be tantamount to default, according to S&P Global Ratings.

The private prison operator is likely to carry out a distressed debt exchange before April of 2023 when its next significant debt payment is due, S&P said in a note Wednesday in which it lowered its rating of Geo by one notch to CCC, or eight levels below investment-grade. It was S&P’s third downgrade of Geo since March last year.

The rating action ...