Grupo Posadas announced an agreement to sell its South America hotel business for $275 million. We are placing our ratings on Posadas on CreditWatch with positive implications. We expect the company to use the majority of the proceeds from the sale to reduce its debt. On July 17, 2012, Standard&Poor's Ratings Services placed its 'CCC+' long-term corporate credit and senior unsecured debt ratings and its 'mxB+' national scale ratings on Mexican hotel operator Grupo Posadas S.A.B. de C.V. (Posadas) on CreditWatch with positive implications. On July 16, 2012, Posadas announced an agreement to sell its South America division to Accor S.A. (BBB-/Stable/A-3) for $275 million (in 2011, this division represented about 15% of Posadas's total revenues and 17%
