Fitch lowers Grupo Posadas

Fitch Ratings said it downgraded Grupo Posadas SAB de CV’s long-term local and foreign issuer default ratings to C from CC. Following these downgrades, Fitch also downgraded the company’s senior unsecured notes due 2022 to C/RR4 from CC/RR4.

“The downgrade follows Posadas’ announcement that it will not meet the company’s senior unsecured notes’ $15.5 million coupon payment due June 30, 2020. The company also announced that it does not intend to make the payment during the 30-day cure period. An uncured interest payment will lead to a downgrade of the IDRs to RD. Once the uncured period for interest payment expires it will lead to a downgrade of the IDRs to RD,” said in a press release.

Also, the company reported it hired advisors to help it evaluate its options.

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