On Sept. 17, 2004, Standard&Poor's Ratings Services assigned its 'BB-' rating to Grupo Posadas S.A. de C.V.'s (Posadas) $150 million senior unsecured notes due 2011. Standard&Poor's also affirmed its 'BB-/Stable/--' corporate credit rating on the company. The issue proceeds will be used to repay existing indebtedness. The notes will be guaranteed jointly and severally by the main operating subsidiaries of Grupo Posadas, which altogether generated 74% of the 2003 EBITDA and had 95% of the total debt. The rating on Posadas reflects its somewhat high financial leverage, cyclicality of the hotel industry, and geographic concentration within Mexico. These factors are offset by the company's position as the largest hotel operator in Mexico, a branding portfolio with
