S&P downgrades Posadas to CCC+

S&P said it lowered its long-term global scale issuer credit and issue-level ratings on Grupo Posadas SAB de CV to CCC+ from B.

The outlook is negative.

S&P noted the lodging industry is facing unprecedented declines in revenue from travel restrictions, booking cancellations, and deferrals stemming from the coronavirus pandemic.

“Despite extraordinary measures announced by the company on March 23, 2020, we believe its operations and liquidity remain highly vulnerable to failure to contain the spread of coronavirus, while also dependent upon improvement in business and economic conditions. Under such circumstances, Posadas' financial commitments appear to be unsustainable in the medium term,” S&P said in a news release.

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