S&P ups Corrections Corp. of America, rates notes BB-

Standard & Poor's said it raised its corporate credit rating on Corrections Corp. of America to BB- from B+ due to its improved financial profile. The outlook is stable.

At the same time, S&P raised Correction Corp.'s senior secured debt rating to BB from BB- and its senior unsecured debt rating to BB- from B+.

In addition, S&P assigned its BB- rating to the company's proposed $375 million senior unsecured notes due 2013. Net proceeds from the proposed debt offering, along with about $12 million in cash will be used to tender for the company's $250 million of senior notes due 2009, prepay a portion of the company's term loan balance and pay related fees and expenses.

S&P said the ratings reflect the company's narrow business focus, political risk and significant debt burden.

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