S&P lifts Grupo Posadas

S&P said it raised the corporate credit and senior unsecured notes ratings to B+ from B on Grupo Posadas, SAB de CV.

The recovery rating on the notes remains at 3, indicating 50% to 70% expected default recovery.

The outlook is positive.

The upgrades follow the improvement of the company’s occupancy rates and revenue per available room beyond expectations, which boosted profitability, revenue and EBITDA, resulting in stronger cash flow generation and liquidity, S&P said.

These improvements occurred despite a volatile foreign-exchange environment and lower GDP growth in Mexico, the agency said.

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