The recent A-H1N1 outbreak in Mexico and economic weakness in the country have led to a further decline in Posadas' occupancy rates and financial performance that is below our expectations. We remain concerned about Posadas' open derivatives position. We are lowering our ratings on Posadas, including lowering the global and national scale corporate credit ratings to 'B+' from 'BB-' and 'mxBBB' from 'mxBBB+', respectively. The ratings remain on CreditWatch with negative implications. We will resolve the CreditWatch listing over the next few weeks, when Posadas has completed several initiatives to improve its liquidity and its cushion against covenant requirements. On June 15, 2009, Standard&Poor's Ratings Services lowered its ratings on Mexican hotel operator Grupo Posadas S.A.B. de C.V.,
