The decline in Mexican hotel operator Grupo Posadas' EBITDA levels and the increase in debt have tightened the covenants under its bank loan agreements, thus weakening its liquidity position. We are lowering our ratings on Posadas, including the global and national scale corporate credit ratings, to 'B-' from 'B+' and 'mxBB-' from 'mxBBB', respectively. Also, we are placing the ratings on CreditWatch with negative implications. We believe the company could breach some of its financial covenants under its US$20 million committed credit line by Dec. 31, 2010. On Nov. 12, 2010, Standard&Poor's Ratings Services lowered its ratings on Mexican hotel operator Grupo Posadas S.A.B. de C.V., including cutting the global scale corporate credit rating to 'B-' from 'B+'
