Moody's rates Grupo Posadas notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Grupo Posadas SA de CV's $75 million of add-on 8¾% senior unsecured guaranteed notes due 2011.

Moody's also affirmed the Ba3 rating on the $150 million senior unsecured guaranteed notes due 2011, the Ba3 senior implied rating and B1 issuer rating.

All proceeds from the new offering will be used to repay outstanding secured and unsecured debt and extend the company's maturity profile. The outlook is stable.

Moody's said Grupo Posadas's rating is supported by the company's leading position in the Mexican hotel industry, strong brand name recognition, national coverage and business diversification, the expected recovery in the company's average rates and occupancies, the change in the company's expansion strategy and an experienced management team which has faced adverse macroeconomic conditions.

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