Moody's shifts CoreCivic trend to stable

Moody's Investors Service said it revised the outlook of CoreCivic, Inc. (CXW) to stable from negative.

“The outlook revision to stable reflects the company's success in allocating free cash flow toward debt repayment as part of its revised capital strategy following the revocation of its REIT election. The company has de-risked the balance sheet with leverage on a net debt to EBITDA basis improving to 3.1x for the last 12-month period ending March 31, 2022,” the agency said in a press release.

“Additionally, the company has minimal remaining exposure on a revenue basis to direct contracts subject to President Biden's 2021 executive order, after the nonrenewal of three contracts with the USMS since the beginning of 2021,” Moody’s said.

Concurrently, Moody's affirmed CoreCivic's corporate family rating and senior unsecured debt rating at Ba2. Moody's also affirmed CXW's senior secured credit facility rating at Ba2. The speculative grade liquidity rating remains unchanged at SGL-2.

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