Standard&Poor's Rating Services''CCC+' and 'mxB+' ratings on Grupo Posadas S.A.B. de C.V. reflect its continued limited financial flexibility and an increase in its debt because of the margin calls on its open derivative positions in third-quarter 2011. We believe that if foreign exchange volatility persists, the company will have to either increase debt (the breach of its debt incurrence covenant, with unadjusted EBITDA coverage of 2.5x limits its ability to do so) or use its cash balance to cover the possible additional margin calls. Therefore, the company will not have sufficient liquidity cushion to face its bank maturities (approximately Mexican pesos [MXN] 770 million in 2012). Moreover, we believe that the company will continue to depend on bank
