Despite the recent improvement in Posadas' financial flexibility for 2012, associated with a significant unwinding of its derivatives position, the potential issuance of mandatorily convertible debentures, and lower dependence on bank waivers due to the recent pay down of its $20 million committed credit line, we believe the company will have difficulties meeting its debt maturities in 2013. We are affirming our ratings on Posadas, including the global and national scale corporate credit ratings of 'CCC+' and 'mxB+', respectively. The negative outlook reflects the possibility of a distressed exchange in first-half 2013, if Posadas is not able to obtain additional capitalization, and/or sell assets. MEXICO CITY (Standard&Poor's) March 15, 2012--Standard&Poor's Ratings Services said today that it
