On June 6, 2007, Standard&Poor's Ratings Services raised its long-term corporate and senior unsecured credit ratings on Grupo Posadas S.A.B. de C.V. (Posadas) to 'BB' from 'BB-'. We also raised our long-term national scale corporate credit rating to 'mxA' from 'mxA-'. The outlook is stable. The rating action reflects the company's consistent operating performance and increased revenues from the operation of third-party hotels, which are more profitable and require less direct investment by the company. In addition, Posadas' EBITDAR margins have been increasing to the 30% area compared to the 25% area in 2002, which is good compared with those of its peers. The rating on Posadas reflects the cyclical nature of the lodging industry and geographic concentration
