The 'B+' corporate credit rating on Grupo Posadas S.A.B. de C.V. reflects its aggressive financial policy, the cyclical nature of the lodging industry, the company's geographic concentration in Mexico, and its relatively high debt leverage. These factors are partially offset by the company's consistent operating performance, its position as the largest hotel operator in Mexico, and its diversified hotel portfolio, including well-recognized brands. During the nine months ended Sept. 30, 2009, Posadas's occupancy levels in owned and leased hotels was 52%, while occupancy levels at managed hotels was 53%, a decline of 10% and 8.4%, respectively, from the same period of 2008. The decline is in line with Standard&Poor's Ratings Services' expectations as a result of the A-H1N1
