Jun. 16 at 8:42 PM
Moody's Ratings upgraded The GEO Group's corporate credit rating to B1 from B2, citing improved leverage metrics driven by higher revenue from reactivated facilities. The agency also raised GEO's senior secured notes and senior secured bank credit facility ratings to Ba3 from B1 and revised the outlook to stable from positive.
The upgrade reflects stronger net debt-to-EBITDA and interest coverage ratios following the reopening of three company-owned facilities in New Jersey, Michigan, and Georgia, as well as new transportation contracts and rate increases. These factors helped boost net operating income by 20% year over year in the first quarter of 2026.
ICE contracts accounted for 51% of GEO's revenue in Q1 2026, up eight percentage points from a year earlier, while the U.S. Marshals Service represented 16%. Moody's expects GEO's net debt-to-EBITDA ratio to improve to 2.5x–3.0x over the next 12–18 months from 3.5x.
$GEO