Standard&Poor's Ratings Services' ratings on Grupo Posadas S.A.B. de C.V. reflect the company's continued limited financial flexibility to face its debt maturities in 2013 of about Mexican pesos (MXN) 3.2 billion, especially the Mexican debt capital market maturities that are due in April 2013, leading to a possible distressed exchange. Moreover, we believe that Posadas will still have limited access to debt, as we expect the company to be in noncompliance with its debt incurrence covenant of unadjusted EBITDA interest coverage of 2.5x in the next two years. Therefore, the company will have to continue seeking strategies including the sale of assets or obtaining additional capitalization. The ratings on Posadas reflect its aggressive financial policy, the cyclicality of
