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Private prisons increase profits, per diem - California accounts for 13% of CCA revenue

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Fitch Ratings has assigned a 'BB+' initial Issuer Default Rating (IDR) to Corrections Corp. of America (CCA). Fitch has also assigned a 'BBB-' rating to the company's $785 million secured credit facility, and a 'BB+' rating to $645 million of senior unsecured notes. The Rating Outlook is Stable. The 'BB+' IDR considers the attractive long-term credit characteristics of the private correctional facilities industry, including:

(1) overcrowding of public prisons,

(2) modest private sector penetration of prison populations, and

3) economically defensive characteristics of prison populations...

LINK - Reuters.com


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