Posadas renegotiated the financial covenants under its $20 million committed bank loan, but its covenant headroom remains tight, in our view. We are affirming our ratings on Posadas, including affirming the global and national scale corporate credit ratings at 'B-' and 'mxBB-', respectively, and removing them from CreditWatch negative. The outlook is negative. We believe the tight covenant headroom could pressure liquidity in the next three quarters. On May 12, 2011, Standard&Poor's Ratings Services affirmed its ratings, including the 'B-' global scale and the national 'mxBB-' national scale corporate credit ratings, on Mexican hotel company Grupo Posadas S.A.B. de C.V. and removed them from CreditWatch, where they were placed with negative implications on Nov. 12, 2010. The outlook
