You are here

Private prison bonds downgrade after Dept. of Justice announcement

The Bond Buyer reported that bonds for three privately-owned prisons in Texas had been downgraded to junk-status after the Department of Justice (DOJ) announced it would be phasing out the use of private prisons. The Justice Department's announcement was a major factor in the downgrading of the bonds.

While the DOJ announcement only affects private prisons run by the federal Bureau of Prisons, the announcement has also led Homeland Security Secretary Jeh Johnson to order a review of the Department of Homeland Security’s reliance on private prisons. The announcement by Sec. Johnson has added more stress to high-level bonds that are used to build detention centers that detain immigrants.  

Blogging Categories: