...November 14, 2023 TORONTO (S&P Global Ratings) Nov. 14, 2023--S&P Global Ratings today assigned its '##' issue-level rating and '1' recovery rating to American Airlines Inc.'s proposed $750 million term loan B due 2029. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in our simulated default scenario and corresponds with an issue-level rating two notches above the issuer credit rating. We understand American is considering a substantially concurrent issuance of $750 million of senior secured debt that will rank pari passu with the new term loan B. We expect the company will apply proceeds from the new financing toward the partial or full repayment of its 11.75% senior secured notes due 2025. The new term loan and potential additional secured debt are expected to effectively have the same security as these notes. Collateral includes a first-lien claim on takeoff and landing slots, foreign gate leaseholds, and route authorities (SGR)...
