Moody's downgrades Posadas

Moody's Investors Service said it downgraded Grupo Posadas, SAB de CV's senior unsecured debt and corporate family ratings to B2 from B1.

The outlook is negative.

The downgrade reflects the greater-than-anticipated deterioration of Posadas' credit metrics in recent quarters, expected further tightening of the company's liquidity, as well as potential additional earnings pressures given the continued reduction of economic growth forecasts for Mexico, according to the agency.

For the 12 months ended in the first quarter in 2009, adjusted debt-to-EBITDA ratio was 5.3 times, up from 4.4 times as of the third quarter in 2008.

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