On Jan. 13, 2005, Standard&Poor's Ratings Services affirmed its 'BB-' local and foreign currency corporate credit ratings on Grupo Posadas S.A. de C.V. (Posadas). The outlook remains stable. At the same time, the rating on Posadas' 8.75% senior unsecured notes due 2011 was also affirmed at 'BB-' following the reopening of the notes, whereby they were increased by US$50 million for a total outstanding amount of US$200 million. The rating on Posadas reflects its somewhat high financial leverage, the 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 diversified hotel portfolio with well-recognized brands, and the development of competitive advantage through
