The American Airlines Inc. pilots' union leadership's rejection of a contract proposal made public by management is a setback in American's long-running contract negotiations. AMR Corp., American's parent company, has reported heavy losses this year and underperformed its peers. Although cash liquidity is currently satisfactory, we believe that this will decline with further losses and heavy debt maturities through the slow winter season. We are lowering ratings on AMR and American, including the corporate credit ratings to 'CCC+' from 'B-', and placing ratings on CreditWatch with negative implications. NEW YORK (Standard&Poor's) Nov. 17, 2011--Standard&Poor's Ratings Services said today that it lowered its ratings on AMR Corp. and subsidiary American Airlines Inc., including the corporate credit ratings
