S&P ups Posadas

Standard & Poor's said it raised its long-term corporate and senior unsecured credit ratings on Grupo Posadas SAB. de CV to BB from BB-.

The agency said it also raised its long-term national-scale corporate credit rating to mxA from mxA-.

The outlook is stable.

The rating action reflects the company's consistent operating performance and increased revenues from the operation of third-party hotels, which are more profitable and require less direct investment by the company, the agency said.

S&P noted that the rating on Posadas reflects the cyclical nature of the lodging industry and geographic concentration within Mexico while these factors are offset by the company's consistent operating performance and manageable debt-maturity schedule, its position as the largest hotel operator in Mexico and a diversified hotel portfolio with well-recognized brands.

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