...- Mexico-based lodging company, Posadas, posted weaker-than-expected results, coupled with significant burden from leases, which resulted in debt to EBITDA consistently above 6.0x in the past few quarters. We don't expect the company to deleverage below 5.0x in the next two years. - Moreover, we believe that next year, Posadas' operation will remain exposed to a challenging economic outlook and weaker fundamentals for the Mexican lodging industry. - As a result, on Nov. 27, 2019, S&P Global Ratings lowered its issuer and issue-level credit ratings on Grupo Posadas, S.A.B. de C.V. (Posadas) to 'B' from 'B+'. - The negative outlook reflects our view of difficult business conditions for the Mexican lodging industry in the next 12 months, stemming from a sluggish economy, budget cuts to tourism, increased competition, and rising security issues. These factors could further weigh on Posadas' operations and reduce market appetite for the refinancing of its notes, which in turn, could undermine...
