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-'. Standard&Poor's also raised its long-term national scale corporate ratings on the company to 'mxA' from 'mxA-'. The outlook on all ratings is stable. The rating action reflects the company's consistent operating performance, as well as the increase of revenues generated from the operation of third-party hotels, which are more profitable and require less direct investment by the company. In addition, Posadas' EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) margins have been increasing to about 30%, compared with about 25% in 2002, which is healthy compared with its
