Fitch cuts Grupo Posadas

Fitch Ratings said it downgraded Grupo Posadas, SAB de CV’s local- and foreign-currency long-term issuer default ratings to CC from CCC+. Fitch also downgraded Posadas’ $393 million senior unsecured notes due 2022 to CC/RR4 from CCC+/RR4.

Also, Fitch downgraded Posadas’ national scale long-term rating to CC(mex) from B-(mex). Simultaneously, Fitch withdrew the national scale long-term rating for commercial issues.

“Posadas’ downgrade reflects the continued pressure on the company’s liquidity position from cash burn resulting from weaker than expected hotel operations,” Fitch said in a press release.

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