...July 1, 2020 On July 1, 2020, S&P Global Ratings lowered its long-term global scale issuer credit and issue-level ratings to 'D' from '##' and removed them from CreditWatch listing, on Mexico-based lodging company Grupo Posadas S.A.B. de C.V. (Posadas) and its senior unsecured notes due June 2022. Posadas didn't fulfill its interest payment of about $15.5 million due June 30, 2020, on its notes and announced it won't do it within the 30-day grace period stated in the notes' indenture. The 'D' issuer credit rating reflects our view that Posadas will fail to pay substantially all of its debt obligations -given that the senior notes represent more than 98% of total debt- as they come due, until it reorganizes its operating strategy and restructures its capital structure. The company's decision not to pay follows a prioritization of liquidity towards its operations while dealing with the coronavirus pandemic, which we consider as a transformational event for the lodging sector globally. Moreover,...
