Cyclicality of the lodging industry; Geographic concentration in Mexico; Lower profitability than its peers'; The largest hotel operator in Mexico; Diversified hotel portfolio, with well-recognized brands; and Improved liability management. High debt levels; Aggressive financial policy; Less-than-adequate liquidity; Improved capital structure and cash flow generation; Incurrence covenant not in compliance in 2013; and Negative discretionary cash flow. The rating outlook is stable, based on our expectations that Grupo Posadas S.A.B. de C.V. (Posadas) will continue improving its capital structure and liquidity while reinforcing its strong market position in Mexico through its remodeling program. We could lower the ratings if liquidity or financial flexibility deteriorate significantly, which could result from the company taking on additional debt to fund the remodeling of
