On April 21, 2006, Standard&Poor's Ratings Services placed its ratings on AMR Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc. (B-/Watch Pos/--) on CreditWatch with positive implications (see list below). The CreditWatch placement reflects improving earnings and cash flow prospects, which should translate into a strengthened financial profile. Ratings on insured, 'AAA' rated debt were not placed on CreditWatch. The 'B+' bank loan rating on American's $773 million credit facility was placed on CreditWatch, but the '1' recovery rating (which addresses recovery prospects in a default scenario) was not placed on CreditWatch. Fort Worth, Texas-based AMR, with consolidated debt and leases of about $22 billion, is the parent of American Airlines, the largest U.S. airline. American Airlines is
