Fitch affirms Grupo Posadas

Fitch Ratings said it affirmed Grupo Posadas SA de CV's BB- senior unsecured foreign currency and local currency ratings and A(mex) national scale rating and removed them from Rating Watch negative. The outlook is stable.

The ratings were placed on Rating Watch negative on Dec. 1 following the announcement that Posadas intended to buy Mexico's largest airline carrier, Grupo Mexicana de Aviacion SA de CV. The removal from Rating Watch Negative and affirmation reflect Fitch's assessment that the acquisition by the company of a minority stake in Mexicana will not significantly alter its credit profile.

Fitch said the ratings reflect the company's solid business position, strong brand name and multiple hotel formats. Posadas' operations are primarily located in Mexico, however, which limits diversification.

By Dec. 31, the company's debt to EBITDAR ratio decreased had decreased to 3.9x from 4.1x in 2004.

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