American Airlines Inc.'s Proposed $750 Million Senior Secured Notes Due 2029 Rated 'BB' (Recovery Rating: '1')

TORONTO (S&P Global Ratings) Nov. 16, 2023--S&P Global Ratings today assigned its 'BB' issue-level rating and '1' recovery rating to American Airlines Inc.'s proposed $750 million senior secured notes due 2029. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a default. The proposed notes will rank pari passu and have the same collateral as the company's new $750 million term loan B due 2029 (see "American Airlines' Proposed Term Loan B Due 2029 Rated 'BB' (Recovery Rating: '1')," published Nov. 14, 2023, on RatingsDirect). The security package includes a first-lien claim on takeoff and landing slots, foreign gate leaseholds, and route authorities (SGR) at certain airports in Mexico, Australia,

...November 16, 2023 TORONTO (S&P Global Ratings) Nov. 16, 2023--S&P Global Ratings today assigned its '##' issue-level rating and '1' recovery rating to American Airlines Inc.'s proposed $750 million senior secured notes due 2029. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a default. The proposed notes will rank pari passu and have the same collateral as the company's new $750 million term loan B due 2029 (see "American Airlines' Proposed Term Loan B Due 2029 Rated '##' (Recovery Rating: '1')," published Nov. 14, 2023, on RatingsDirect). The security package includes a first-lien claim on takeoff and landing slots, foreign gate leaseholds, and route authorities (SGR) at certain airports in Mexico, Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, South Korea, and Switzerland. There is also a second lien on security interests in certain SGR assets in the European Union and the U.K. The...

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