S&P affirms Grupo Posadas

Standard & Poor's said it affirmed the BB- long-term corporate credit rating on Grupo Posadas SAB de CV and removed ratings from CreditWatch, were they were placed with negative implications on Oct. 13.

The agency lowered the long-term Mexican national scale corporate credit rating to mxBBB+ from mxA-.

The outlook is negative.

"The affirmation followed completion of our review of Posadas' operating and economic prospects," S&P analyst Monica Ponce said in a statement.

The corporate credit rating reflects the company's aggressive financial policy, the cyclical nature of the lodging industry, the company's geographic concentration in Mexico and its relatively high debt leverage, the agency said.

These factors are partially offset by the company's consistent operating performance, its position as the largest hotel operator in Mexico and its diversified hotel portfolio, including well-recognized brands, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.