Fitch rates Posadas notes B+

Fitch Ratings said it has assigned a B+/RR3rating to Grupo Posadas SAB de CV's $50 million reopening of its senior unsecured notes due 2017.

Proceeds from the reopening are expected to be used primarily to pay down existing debt and, to a lesser extent, for general corporate uses, the agency added.

According to Fitch, Posadas' ratings are supported by the company's solid business position, strong brand name and multiple hotel formats. Conversely, the ratings are tempered by a track record of high leverage, as well as industry cyclicality.

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