Moody's reviews Posadas

Moody's Investors Service said it placed Grupo Posadas, SAB de CV's B2 corporate family and senior unsecured debt ratings on review for downgrade.

The review was prompted by Posadas' weaker than expected earnings trends and credit metrics year-to-date, reflective of still challenging conditions in Mexico's tourism sector despite the gradual economic recovery, and the company's tempered liquidity following dividend payments earlier this year and weak cash generation, according to the agency.

The action also reflects potential effects on Posadas operations of the bankruptcy filing of Mexicana de Aviación, Mexico's largest airline in terms of passenger volume, the agency said.

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