On June 20, 2003, Standard&Poor's Ratings Services raised its ratings of AMR Corp. (B-/Negative/--) and subsidiary American Airlines Inc. (B-/Negative/--), including raising the corporate credit ratings of each to 'B-' from 'CCC', and removed ratings from CreditWatch, where they were placed with developing implications on March 28, 2003. The outlook is negative. The upgrade of AMR and American is based on expected earnings and cash flow improvement as a result of the April 2003 agreement with labor groups on $1.8 billion of annual concessions over the next five years. AMR remains highly leveraged and vulnerable to any further airline industry revenue deterioration, but near-term liquidity is adequate, with about $1.45 billion of unrestricted cash. The labor concessions and
