Fitch downgrades Posadas

Fitch Ratings said it downgraded Grupo Posadas, SAB de CV’s long-term local and foreign-currency issuer default ratings to RD from C, after the expiration of the 30-day grace period on an interest payment, which Fitch said it considers a restricted default.

Also, Fitch affirmed the company’s senior notes due 2022 at C/RR4. The RR4 recovery rating assigned indicates average historical recovery prospects of 31%-50% of current principal and interest given default, the agency said.

“On June 25, 2020, Posadas announced 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 did not intend to make the payment during the 30-day cure period. The 30-day grace period ended on July 30,” Fitch said in a press release.

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