Moody's may downgrade Posadas

Moody's Investors Service said it placed Grupo Posadas, SAB de CV's Ba3 corporate family and senior unsecured debt ratings on review for downgrade.

The review was prompted by margin calls that Posadas has received on some cross-currency swaps for Mexican peso-denominated debt instruments. The agency said this has created pressure on the company's short-term liquidity and will require a swift response to alleviate the situation.

Posadas' ratings continue to be supported by the company's leading position and brand recognition in the Mexican hotel industry, nationwide coverage, segment diversification and adequate credit metrics, Moody's said.

These strengths are partly offset by intense competition, the cyclical nature of the lodging industry and Moody's belief that Mexicana, an ailing airline, may require financial support from Posadas, its largest individual shareholder.

For the 12 months ended June 30, Posadas reported an adjusted debt-to-EBITDA ratio of 3.8 times.

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