S&P: Grupo Posadas view to stable

S&P said it revised its outlook on Grupo Posadas SAB de CV to stable from positive and affirmed its B+ corporate credit and issue-level ratings.

The recovery rating on the notes remains at 3, indicating an expectation of a meaningful (50%-70%) recovery in the higher end of the range, for unsecured lenders in a hypothetical event of a payment default.

S&P said the outlook revision reflects its expectation that despite Posadas' steady top-line growth and healthy operating performance, the previously expected deleveraging and improvement in credit metrics, such as debt to EBITDA approaching 4 times, will take longer to materialize.

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