Biden Order Hits Private U.S. Prisons’ Credit Ratings
- S&P, Moody’s both downgraded Geo, CoreCivic on Wednesday
- President told DOJ to sever ties with private prison operators
Photographer: John Moore/Getty Images
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For years, private U.S. prison companies have faced scrutiny from social justice advocates, politicians and investors. Now that the Biden administration is severing the federal government’s ties, the industry’s creditworthiness is taking a hit.
On Wednesday, S&P Global Ratings lowered its credit ratings on Geo Group Inc. and CoreCivic Inc. -- the nation’s largest operators of private detention facilities -- citing growing questions about the outlook for the companies’ profits and concerns over their ability to refinance debt. A few hours later, Moody’s Investors Service took similar actions on both companies.