Standard&Poor's Ratings Services derives its 'B' corporate credit rating on American Airlines Group Inc. (AAG) from: Our anchor of 'b', based on our "fair" business risk and "highly leveraged" financial risk profile assessments for the company. Analytical modifiers, which had no impact on the rating outcome. The airline industry is included in cyclical transportation, which we assess as having high industry risk; AAG is the largest U.S. airline after the Dec. 9, 2013, combination of AMR Corp. (parent of American Airlines Inc.) and US Airways Group Inc.; A weaker Pacific route network than its major competitors; Expected substantial revenue synergies and overhead cost savings from the merger; and Higher labor costs and $1.2 billion of merger integration expenses
