S&P: Grupo Posadas notes B

Standard & Poor’s said it affirmed the B corporate credit and debt ratings on Grupo Posadas.

The agency also said it assigned a B rating to the company’s proposed long-term senior unsecured notes. The recovery rating on the existing and proposed notes is 3, indicating 50% to 70% expected default recovery.

The outlook remains stable.

The ratings reflect the company’s fair business risk profile due to an expectation that the company will maintain its strong brand and market positions in Mexico, S&P said.

The ratings also consider expectations that the company will maintain its EBITDA margins at slightly more than 20% in the next 12 months, the agency said.

Given that the company plans to use the new issuance for refinancing rather than increasing its debt, S&P said it expects Posadas will maintain relative stable debt levels and credit metrics.

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