S&P cuts Grupo Posadas

Standard & Poor's said it lowered Grupo Posadas SAB de CV's ratings, including cutting the global scale corporate credit rating to B- from B+ and the national scale corporate credit rating to mxBB- from mxBBB. The ratings were placed on CreditWatch with negative implications.

The ratings reflect the company's higher debt leverage, its more aggressive financial policy, as well as its weakening liquidity position, S&P said.

The CreditWatch placement reflects the uncertainty regarding the successful negotiation of Posadas' covenants under its bank loan agreements while facing the high possibility of a breach by year end, the agency said.

For the 12 months ended Sept. 30, the adjusted total debt-to-EBITDA ratio was 6.7 times.

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