Posadas Seen Comfortable for Funds

Mexican hotel chain Posadas faces a comfortable debt maturity schedule, according to Fitch, which affirms the credit and its senior notes due 2011 at BB (stable). “The company has continued to perform positively, steadily growing its number of rooms while maintaining occupancy rates stable and increasing revenue per available room,” says Fitch. The ratings reflect the company’s solid business position, strong brand name and multiple hotel formats. The company recently issued approximately $73m in local markets to refinance upcoming maturities and existing debt, improving its debt profile while also reducing funding costs. As of June 30, on-balance sheet debt reached $399m of which 80% was dollar-denominated and the remainder was in MXP, says Fitch. Short-term debt represented 15% of the total, and Posadas also had approximately $194m in off-balance sheet debt related to hotel leases. “The company has comfortable liquidity with a balance of cash and marketable securities of $43m,” says Fitch.