Grupo Posadas is the largest hotel operator in Mexico. We are affirming our ratings on Grupo Posadas and removing them from CreditWatch Negative. Posadas faces important maturities in 2010 that could tighten its liquidity position. On Dec. 18, 2009, Standard&Poor's Ratings Services affirmed its ratings on Grupo Posadas S.A.B. de C.V., including its 'B+' long-term corporate credit rating. The recovery rating on its senior unsecured notes remains '3'. The ratings were removed from CreditWatch Negative, were it was placed originally on May 8, 2009. The outlook is negative. The corporate credit rating on Posadas reflects its aggressive financial policy, the cyclical nature of the lodging industry, the company's geographic concentration in Mexico, and its relatively high debt leverage.
