Position as the largest hotel operator in Mexico; Diversified hotel portfolio, with well-recognized brands; Less dependence on waivers of covenants that accelerate payments; and Significant unwinding of its derivative positions. High financial leverage; Operation in the cyclical hotel industry; Limited financial flexibility; Significant debt maturities in 2013 and 2015; Geographic concentration in Mexico; and Low profitability compared with peers. Standard&Poor's Ratings Services' ratings on Grupo Posadas S.A.B. de C.V. reflect the company's continued limited financial flexibility to face its debt maturities in 2013 of about Mexican pesos (MXN) 3.2 billion, especially the Mexican debt capital market maturities that are due in April 2013, leading to a possible distressed exchange. Moreover, we believe that Posadas will still have limited
