Fitch Ratings on April 12 affirmed all ratings for , includingits BB+ issuer defaultrating, BBB-/RR1 secured revolving credit facility rating and BB+/RR4 senior unsecurednote rating.
The rating agency also assigned the company's secured term loana BBB-/RR1 rating.
The outlook is stable.
Fitch said Corrections Corp.'s "strong" credit metrics,tempered by a steady occupancy rate drop and weakening margins, were reflected inits BB+ issuer default rating. It added that the company's revenues continue torely largely on short-term contracts with state and federal government entitiesthat may be dissolved at any time, as well as funds for contractual payments thatare usually subject to annual budget approvals with political undertones.
Earlier, Corrections Corp. announced that it Correctional Management Inc. inan estimated $35.0 million deal.