S&P cuts Grupo Posadas

S&P said it cut its long-term global scale issuer credit and issue-level ratings to D from CC and removed them from CreditWatch listing, on Grupo Posadas SAB de CV and its senior unsecured notes due June 2022.

Posadas did not make its interest payment of about $15.5 million due Tuesday, on its notes and announced it won’t do it within the 30-day grace period stated in the notes’ indenture.

“The D issuer credit rating reflects our view that Posadas will fail to pay substantially all of its debt obligations -given that the senior notes represent more than 98% of total debt- as they come due, until it reorganizes its operating strategy and restructures its capital structure,” S&P said in a press release.

The company’s decision puts liquidity for its operations first while dealing with the pandemic, which S&P considers as a transformational event for the lodging sector globally, the agency said.

“Moreover, Posadas announced it has hired legal and financial advisors to review its operating and financial strategy, and to evaluate alternatives for its capital structure in the near term, along with bondholders and other stakeholders,” S&P said.

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