Posadas has maintained a healthy operating performance amid increasing average daily rates (ADRs) thanks to occupancy rates of close to 70%. Nonetheless, the steep depreciation of the Mexican peso is preventing the company's credit metrics from improving in line with our previous expectations. We're revising our outlook on Mexico-based lodging owner and operator Posadas to stable from positive. We also affirmed our 'B+' ratings on the company. The stable outlook reflects our expectation that Posadas will maintain a solid operating performance with occupancy rates above 70%, double-digit revenue per available room (RevPar) growth, and EBITDA margins close to 25%. These factors should mitigate pressures on the company's financial performance, stemming from the currency volatility's impact on its capital structure. On
