American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-' - S&P Global Ratings’ Credit Research

American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-'

American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-' - S&P Global Ratings’ Credit Research
American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-'
Published Jul 21, 2016
5 pages (2005 words) — Published Jul 21, 2016
Price US$ 150.00  |  Buy this Report Now

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Abstract:

We expect that Fort Worth, Texas-based American Airlines Group Inc.'s (AAG) earnings and cash flow will be somewhat weaker in 2016 and 2017 than the very strong levels the company posted in 2015 because of lower pricing in some markets. We anticipate that AAG's credit measures will slip somewhat from their 2015 levels but continue to support our ratings. We are affirming our 'BB-' corporate credit rating on American Airlines Group Inc. and its subsidiaries American Airlines Inc. and US Airways Inc. At the same time, we are raising our issue-level ratings on the company's senior unsecured debt to 'BB-' from 'B+' and are revising our recovery ratings on the debt to '4' from '5'. Additionally, we are affirming our

  
Brief Excerpt:

...+ We expect that Fort Worth, Texas-based American Airlines Group Inc.'s (AAG) earnings and cash flow will be somewhat weaker in 2016 and 2017 than the very strong levels the company posted in 2015 because of lower pricing in some markets. + We anticipate that AAG's credit measures will slip somewhat from their 2015 levels but continue to support our ratings. + We are affirming our '##-' corporate credit rating on American Airlines Group Inc. and its subsidiaries American Airlines Inc. and US Airways Inc. + At the same time, we are raising our issue-level ratings on the company's senior unsecured debt to '##-' from 'B+' and are revising our recovery ratings on the debt to '4' from '5'. + Additionally, we are affirming our issue-level ratings on most of American Airlines Inc.'s and US Airways Inc.'s enhanced equipment trust certificates (EETCs), though we are also raising and lowering our ratings on select certificates due to changes in their collateral coverage. + The stable outlook reflects...

  
Report Type:

Ratings Action

Ticker
Issuer
GICS
Airlines (20302010)
Sector
Global Issuers , Public Finance , Structured Finance
Country
Region
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-'" Jul 21, 2016. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/American-Airlines-Group-Corporate-Credit-Rating-Affirmed-Outlook-Stable-Senior-Unsecured-Debt-Ratings-Raised-To-BB-1679050>
  
APA:
S&P Global Ratings’ Credit Research. (). American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-' Jul 21, 2016. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/American-Airlines-Group-Corporate-Credit-Rating-Affirmed-Outlook-Stable-Senior-Unsecured-Debt-Ratings-Raised-To-BB-1679050>
  
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