The 'BB-'rating on Grupo Posadas S.A. de C.V. (Posadas) reflects its somewhat high financial leverage, the cyclicality of the hotel industry, and geographic concentration within Mexico. These factors are offset by the company's consistent operating performance, and a manageable debt-maturity schedule, its position as the largest hotel operator in Mexico, and a diversified hotel portfolio with well-recognized brands. During the third quarter, the company decided to close the Fiesta Americana Condesa Acapulco to the public to continue the hotel's conversion to Vacation Club units. It is expected that the conversion will be complete by year's end. With the company's other hotel, the Fiesta Americana Grand Aqua still closed, 29% of Posadas' coastal room supply was affected. That's compared with the
