The 'B-' corporate credit rating on Posadas reflects its aggressive financial policy, weak liquidity position, and highly leveraged financial profile. These factors are partially offset by the company's position as the largest hotel operator in Mexico and its diversified hotel portfolio, including recognized brands. The company's debt levels are high, resulting in a highly leveraged financial profile. For the 12 months ended Sept. 30, 2010, adjusted total debt to EBITDA and funds from operations (FFO) to total debt ratios stood at 6.7x and 5.3%, respectively, which compare negatively with the 5.1x and 14.4% reported for the same period of the previous year. The increased leverage is mainly due to the company's lower EBITDA generation, reflecting the slower-than-expected recovery in its
