S&P drops Posadas

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

The long-term local scale rating was also lowered to mxA- from mxA, the agency said, adding that all ratings have been placed on Creditwatch with negative implications.

The rating actions reflect Grupo Posadas' exposure to derivative instruments related to foreign-exchange swaps, which have recently resulted in mark-to-market losses, the agency said.

The rating action also reflects the company's financial policy, which has proven to be more aggressive than S&P said it expected.

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